Trump's policies have led to a surge in U.S. customs tariff revenue, but government spending has increased rather than decreased.

On June 12, according to the U.S. Treasury Department's monthly budget statement, U.S. customs duty revenues reached $23 billion in May, an increase of $17 billion, or 270%, from the same period last year. The May figure is more than three times the monthly average for 2024. The jump in tariff revenues reflects the impact of several of Trump's new tariffs, most of which went into effect in early April. More than just tariffs, total government tax revenues rose 15% to $371.2 billion in May, up from $323.6 billion last year. However, the record tariff revenues are a drop in the bucket compared to all U.S. government spending, which amounted to $687.2 billion in May (up 2.5% from a year earlier), so tariff revenues account for only 3% of U.S. government spending. Treasury officials said the improvement in fiscal conditions last month was also due to lower debt interest payments, which were helped by lower interest payments on inflation-linked securities and lower discount rates on short-term Treasury bills. Still, the overall picture remains gloomy, with interest payments reaching $92.2 billion in May, reflecting an unsustainable debt situation in the United States. The U.S. government accumulates $1.2 trillion in total interest payments each year, just $300 billion less than the largest spending category, Social Security. (Golden Ten)