Washington - Saba:
The US budget deficit increased 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, reaching $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 partly due to higher spending, particularly on health care programs for retirees 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.
On the revenue side, customs revenues increased from $61 billion a year earlier to $113 billion in the first three quarters of the current fiscal year.
This increase is explained by the increase in 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 projected that the tariffs would generate an additional $300 billion by the end of the year.
The US budget deficit increased 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, reaching $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 partly due to higher spending, particularly on health care programs for retirees 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.
On the revenue side, customs revenues increased from $61 billion a year earlier to $113 billion in the first three quarters of the current fiscal year.
This increase is explained by the increase in 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 projected that the tariffs would generate an additional $300 billion by the end of the year.