US: Budget deficit improves little despite soaring tariff revenue

Official data released on October 16 showed that the US budget deficit improved slightly over the past year, although the world's leading economy 's tax revenue increased to a record high after President Donald Trump imposed a series of new tariffs since the beginning of the year.

Tariff revenue jumped to $202 billion, up from $84 billion a year earlier, according to the Treasury Department . But the overall budget deficit fell just 2%, or $41 billion, in fiscal 2025, which ends in September. Interest costs on the government debt rose to a record $1.2 trillion, and health care spending increased.

Personal tax collections also rose 6% over the year, from $3.3 trillion to $3.5 trillion. However, total corporate tax collections fell 14% to $486 billion. The Treasury Department estimates the deficit as a percentage of GDP at 5.9%, down from 6.3% in the previous fiscal year.

President Donald Trump has imposed a series of reciprocal tariffs, targeting key sectors such as steel, aluminum and automobiles, on individual countries. However, his global tariffs are facing legal challenges. The Supreme Court is scheduled to hear the legality of Trump’s tariffs next month. In an interview last month, US Treasury Secretary Scott Bessent said the department could have to repay “a significant amount of money” if the court rules against it.

The budget data comes as the US government shutdown enters its 16th day, with Congress deadlocked over spending. Mr. Bessent warned midweek that the shutdown is starting to take its toll and could cost the US economy billions of dollars. A Treasury official said the losses could be as high as $15 billion a week, after Mr. Bessent gave a $15 billion daily figure at a news conference.

Source: https://vtv.vn/my-tham-hut-ngan-sach-it-cai-thien-du-nguon-thu-thue-quan-tang-vot-100251017142936008.htm