The US budget deficit is widening despite tariff revenues

The US budget deficit widened between October and June compared to the same period last year, despite higher tariff revenues, according to documents released by the Treasury Department on Friday.

In the first nine months of the US fiscal year, the deficit rose by $64 billion, to $1.4 trillion, compared to just over $1.3 trillion a year earlier, a 6% increase, according to Treasury Department data.

This growing deficit is due in part to increased spending, particularly on health care programs for retired and low-income Americans.

Another factor is the rising cost of US debt, with the government paying more than $920 billion in interest, a record high.

In terms of revenues, customs revenues rose from $61 billion a year ago to $113 billion in the first three quarters of the current fiscal year.

This increase is explained by increased tariffs imposed on goods entering the United States, which increased from an average rate of 2.5% at the end of 2024 to 17.6% on July 1, 2025, according to data from Yale University.

During a Cabinet meeting this week, Treasury Secretary Scott Besant predicted that the tariffs would generate an additional $300 billion by the end of the year.