The U.S. budget deficit surged nearly 20% in July to $291 billion despite a significant increase in customs duty collections from President Donald Trump’s tariffs, as government spending outpaced revenue growth.
According to the Treasury Department, total receipts increased by 2% to $338 billion, while government outlays soared 10% to a record $630 billion for the month.
Adjusting for fewer business days in July compared to last year, receipts would have been about $20 billion higher. Customs duties alone rose sharply to approximately $27.7 billion from $7.1 billion the previous July, reflecting the impact of Trump’s tariff policies.
Although tariffs have boosted federal revenue, the additional costs often trickle down to consumers through higher prices.
Consumer price data revealed price hikes in tariff-sensitive items such as furniture, footwear, and auto parts, partially offset by falling gasoline prices.
For the first 10 months of the fiscal year, customs duties totalled $135.7 billion, up 116% from the previous year.
Meanwhile, the year-to-date budget deficit expanded by 7% to $1.629 trillion, with record-high receipts of $4.347 trillion and outlays of $5.975 trillion.
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The European Union has moved closer to finalising a trade agreement with the United States in an effort to avoid a new tariff escalation threatened by President Donald Trump. The proposed deal is aimed at stabilising transatlantic trade ties amid mounting economic and political pressure.
The European Union has moved closer to implementing tariff cuts under last year’s U.S. trade agreement after negotiators agreed on a provisional legislative text.
U.S. President Donald Trump and China's Xi Jinping are set to meet on Friday (15 May) to wrap up a two-day state visit that has featured pomp and business deals but also a warning from Xi that mishandling the Taiwan issue could send relations spiraling.
Chinese President Xi Jinping and U.S. President Donald Trump are holding high-level talks in Beijing on Thursday, following a ceremonial welcome, with both leaders highlighting cooperation despite ongoing tensions.
A group of Azerbaijani civil society organisations has called for increased scrutiny of Swiss building materials giant Holcim, citing court rulings and ongoing investigations linked to its subsidiary Lafarge's activities during the Syrian conflict.
The World Health Organization (WHO) says ongoing conflict, funding pressures and international travel restrictions are complicating efforts to contain a fast-growing Ebola outbreak in the Democratic Republic of Congo (DRC).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia and Kazakhstan signed 15 agreements during President Vladimir Putin’s state visit to Astana on Thursday (28 May), including deals on Kazakhstan’s first nuclear power plant and expanded oil cooperation with Russia.
European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
BP has removed its chair, Albert Manifold, with immediate effect, citing concerns over governance and conduct. The company said its board had unanimously decided that Manifold should no longer serve as chair or director.
The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
Kevin Warsh will be sworn in as chair of the U.S. Federal Reserve on Friday as policymakers consider higher interest rates to tackle inflation linked to the Trump administration’s Iran policy.
A government-mediated agreement has suspended an 18-day walkout by about 48,000 Samsung union members, easing fears of damage to South Korea's economy and global chip supply.
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