Surge in US Tariff Revenues Reaches Nearly $27 Billion in June 2023

In June 2023, tariff revenues collected by the United States reached nearly $27 billion, marking a significant surge that is expected to set a new monthly record. This increase indicates a continued contribution from importers, as reported by the Treasury Department. According to a daily statement issued by the Treasury on June 25, this month's receipts signify a considerable rise compared to prior months. Notably, June's revenue has surpassed May's total of approximately $22 billion, along with the April and March figures of $17.4 billion and $9.6 billion, respectively. Importers are often known to make their tariff payments in large sums on specific days, with one notable deposit exceeding $19.9 billion recorded on June 24. Since the beginning of the fiscal year, tariff revenues have accumulated to more than $121 billion. These figures reflect a dramatic spike in revenue that has characterized President Trump's second term, outpacing totals from his first term and previous administrations. Commerce Secretary Howard Lutnick recently praised the escalating revenue from tariffs, emphasizing it in a post where he also offered criticism of Federal Reserve Chair Jerome Powell. Lutnick stated, “What he avoids discussing is the incredible revenue increase the US has received from these tariffs,” and referred to a potential monthly revenue rate that could exceed $30 billion. June marks the first month in which tariff rates have largely stabilized, following a period of fluctuating duties early in Trump’s second term, which began with 10% tariffs imposed in April on a broad array of imports. Furthermore, a recent report from the Congressional Budget Office (CBO) projected that Trump's tariffs could alleviate primary deficits by approximately $2.8 trillion over the next decade, contingent upon current tariff levels remaining unchanged after Trump concludes his presidency. The Council of Economic Advisers Chair, Stephen Miran, suggested that internal estimates might indicate even better outcomes than those projected by the CBO, noting, "Our internal estimates are maybe a hair higher than that." Looking ahead, the possibility of new tariffs looms, with President Trump suggesting the introduction of additional tariffs during an event labeled “Liberation Day 2.0,” scheduled for July 9. However, there have been indications that deadlines may be extended for countries that are viewed as negotiating in good faith. While the recent data shows an approximately $1 billion daily increase in tariff revenue, experts caution that these figures may be slightly inflated since the Treasury Department aggregates customs duties and certain excise taxes as a single total. More precise data, focusing specifically on customs duties, is anticipated in the coming weeks. In the context of overall government finances, these tariff revenues represent a small fraction of total monthly spending. For example, total government receipts for May reached about $371 billion. In a broader historical context, tariff revenue has typically comprised around 2% of federal income, although recent trends have seen that proportion rise to approximately 4% to 5%. Read more: What Trump's tariffs mean for the economy and your wallet Read more: 5 ways to tariff-proof your finances Click here for political news related to business and money policies Read the latest financial and business news from Yahoo Finance