US Treasury declares abrupt surplus

(MENAFN) The US Treasury reported a surprising budget surplus for June, largely fueled by a sharp rise in customs duties following President Donald Trump’s tariff increases. According to the Treasury’s monthly report released Friday, the government recorded a surplus of over $27 billion last month, reversing a deficit of more than $300 billion in May.

The surplus was primarily driven by higher tariff collections, with customs duties bringing in around $27 billion – a 301% jump compared to the same period last year when they totaled $7 billion. Since the start of the fiscal year in October 2024, total tariffs collected have surpassed $113 billion, nearly double the previous year’s amount.

Treasury Secretary Scott Bessent praised the results, stating that the US is “reaping the rewards” of Trump’s aggressive tariff policies. “President Trump is working to reclaim America’s economic sovereignty, and today’s Treasury Statement shows record customs revenue – without inflation!” Bessent posted on X. He also predicted customs duty collections could reach $300 billion by year’s end.

Trump’s tariff measures, first announced on April 2 as part of what he called ‘Liberation Day,’ included a 10% blanket tariff on nearly all trade partners and even higher duties on imports from China, Mexico, Canada, and the EU. Although some tariffs were delayed for negotiations, further duties have since been imposed on key materials like steel, copper, and aluminum. Recently, Trump introduced a 25% tariff on imports from Japan and South Korea, with more reportedly under consideration if agreements aren’t reached.

These policies have triggered pushback from US trading partners. India, facing a 50% tariff, has filed for retaliatory measures through the WTO. China, which faces some of the steepest tariffs, has paused countermeasures amid ongoing talks but called Trump’s actions unlawful. Both countries are BRICS members, a bloc Trump recently accused of pursuing “anti-American policies,” prompting his threat of additional 10% tariffs.

The EU has warned that the tariffs could cause long-term harm to transatlantic relations. European Commission President Ursula von der Leyen said the relationship with Washington “may never return to what it once was.”

Russia, already heavily sanctioned, is not directly affected by the new tariffs. However, Trump recently voiced support for a proposed bill that would impose 500% tariffs on nations purchasing Russian goods and energy. The legislation, backed by Senator Lindsey Graham, is aimed at pressuring Moscow over the Ukraine conflict. Russian officials have dismissed the threat, vowing to continue on their “sovereign path” and adapt to the measures. Moscow maintains it is open to negotiations with Kiev but insists any peace deal must reflect current battlefield realities and ensure Ukraine’s neutrality, demilitarization, and denazification.

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