Treasury posts unexpected surplus in June as tariff receipts surge

Treasury posts unexpected surplus in June as tariff receipts surge


A view shows a bronze seal beside a door at the U.S. Treasury building in Washington, U.S., January 20, 2023. 

Kevin Lamarque | Reuters

The U.S. government posted a surplus in June as tariffs gave an extra bump to a sharp increase in receipts, the Treasury Department said Friday.

With government red ink swelling throughout the year, last month saw a surplus of just over $27 billion, following a $316 billion deficit in May.

That brought the fiscal year-to-date deficit to $1.34 trillion, up 5% from a year ago. However, with calendar adjustment, the deficit actually edged lower by 1%. There are three months left in the current fiscal year, which ends Sept. 30.

A 13% increase in receipts from the same month a year ago helped bridge the gap, with outlays down 7%. For the year, receipts are up 7% while spending has risen 6%.

The government last posted a June surplus in 2017, during President Donald Trump’s first term.

Increasing tariff collections are helping shore up the government finances.

Customs duties totaled about $27 billion for the month, up from $23 billion in May and 301% higher than June 2024. On an annual basis, tariff collections have totaled $113 billion, or 86% more than a year ago.

Trump levied across-the-board 10% tariffs on imports in April on top of other select duties. He also announced a menu of so-called reciprocal tariffs on various U.S. trading partners and has been in negotiations since.

The Treasury Department noted that the month benefited from calendar adjustments, without which the deficit would have been $70 billion.

Persistently high Treasury yields again posed a challenge for federal finances.

Net interest on the $36 trillion national debt totaled $84 billion in June, down slightly from May but still higher than any other category with the exception of Social Security. For the year, net interest — what Treasury pays on the debt it issues minus what it earns on investments — is at $749 billion. Total interest payments are projected at $1.2 trillion for the full fiscal year.

Trump has been pushing the Federal Reserve to cut short-term rates to help with the financing burden of servicing federal debt. But markets don’t expect the central bank to ease again until September, and Fed Chair Jerome Powell has said he remains leery of the potential impact that tariffs might have on inflation.

Trump’s own “big beautiful” spending bill that made its way through Congress earlier this month is expected to add about $3.4 trillion to the national debt over the next decade, according to the nonpartisan Congressional Budget Office’s projections.

Clarification: This story has been updated to clarify the current deficit figures.

Don’t miss these insights from CNBC PRO



Source

BOJ’s Ueda expects tightening job market to push up wages
World

BOJ’s Ueda expects tightening job market to push up wages

Bank of Japan Governor Kazuo Ueda attends the Federal Reserve Bank of Kansas City’s 2025 Jackson Hole Economic Symposium in Jackson Hole, Wyoming on Aug. 23, 2025. Jim Urquhart | Reuters Bank of Japan Governor Kazuo Ueda said wage hikes are spreading beyond large firms and likely to keep accelerating due to a tightening job […]

Read More
From NYC to Cape Town and Shanghai: The 10 best cities for Gen Z to live in, according to them
World

From NYC to Cape Town and Shanghai: The 10 best cities for Gen Z to live in, according to them

In August, Time Out released its annual ranking of the word’s best cities, which includes the top cities for food, culture, and nightlife. For the first year, Time Out included the 10 best cities for for Gen Z to live in, according to them. The survey of over 18,500 people from around the world and […]

Read More
Medtronic makes two key additions to its board. How activist Elliott can build shareholder value
World

Medtronic makes two key additions to its board. How activist Elliott can build shareholder value

Michael Siluk | Education Images | Universal Images Group | Getty Images Company: Medtronic PLC (MDT) Business: Medtronic PLC is an Ireland-based company, which provides health-care technology solutions. The company’s products category includes Advanced Surgical Technology; Cardiac Rhythm; Cardiovascular; Digestive & Gastrointestinal; Ear, Nose & Throat; General Surgery; Gynecological; Neurological; Oral & Maxillofacial; Patient Monitoring; […]

Read More