Tariff revenue surged to a record $16 billion in April, helping to slow the rate of U.S. budget deficit growth, the Treasury Department announced Monday. Customs duties totaled $16.3 billion in April, nearly doubling the $8.2 billion collected in March, as President Donald Trump’s broad protective tariffs took full effect. The administration imposed at least 10% tariffs on imports from select countries and escalated its trade conflict with China by applying tariffs as high as 145% on Chinese goods.
From October 2024 through April 2025, year-to-date tariff revenue reached $59.2 billion—a sharp increase from the $44.1 billion collected during the same period in fiscal year 2024. In April, the federal government recorded a $258 billion budget surplus—an increase of 23% compared to the same month last year—driven by $850.2 billion in receipts and $591.8 billion in outlays.
The cumulative federal deficit for fiscal year 2025 through April 30 stood at $1.049 trillion, marking a 22.7% rise from the $855 billion deficit during the same period in FY 2024. Although April’s record-high tariff revenues didn’t shrink the deficit, they helped slow the pace at which it is growing, Fox Business reported.
From October 2024 through April 2025, the federal government collected a record $3.11 trillion in revenue and spent a record $4.159 trillion, though the resulting deficit was not a record. The top sources of revenue included individual income taxes at $1.681 trillion, social insurance and retirement contributions at $1.018 trillion, and corporate income taxes at $255.2 billion. These were followed by customs duties ($59.2 billion), excise taxes ($59.4 billion), estate and gift taxes ($16.6 billion), and miscellaneous receipts totaling $21.0 billion.
However, that surge in revenue is expected to decline following a weekend agreement between the U.S. and China to temporarily ease their steep tariffs. Under the deal, the U.S. will reduce its tariffs on Chinese goods from 145% to 30% for the next 90 days, while China will lower its duties on U.S. imports from 125% to 10%. Meanwhile, interest payments on the public debt remain a significant expense. In April alone, the federal government paid $101.65 billion in gross interest, bringing the total for fiscal year 2025 to $684.1 billion through the end of April, Fox Business noted.
