Payam Javan: The U.S. government achieved a $27 billion budget surplus in June, a significant improvement from May’s $316 billion deficit. This surplus was primarily driven by record-breaking tariff revenue, totaling $27.2 billion in customs receipts for the month, one of the highest in the past decade. This increase in tariff collections, which are up 86% year-over-year to $113 billion, reflects President Donald Trump’s ongoing strategy of imposing higher tariffs on global trading partners to address perceived unfair trade practices.

In addition to the boosted revenue, government spending also saw a substantial 27% decline in June, dropping by $187 billion from May to $499 billion. Treasury Secretary Scott Bessent projects that tariff revenue could reach $300 billion by the end of 2025. President Trump continues to advocate for tariffs as a means to rebalance trade and generate revenue, with further increases anticipated for countries that do not finalize trade agreements with the U.S. by August 1st. To date, only the U.K., Vietnam, and China have secured deals, while major trading partners like South Korea, Japan, and Canada face potential tariff hikes.