U.S. Deficit Soars as Tariff Windfall Doesn’t Curb Spending

Despite a substantial $21 billion increase in customs duty collections due to Trump’s tariffs, the U.S. government recorded a record-breaking deficit of $291 billion in July. This large shortfall is attributed to a sharp rise in federal spending outpacing revenue growth. While receipts climbed by 2%, reaching a total of $338 billion, spending surged to a record-high $630 billion, driven largely by increased government expenditure.