U.S. customs tariff revenue surged to $23 billion in May, marking a significant 270% increase year-over-year, according to the latest U.S. Treasury Monthly Budget Statement. This sharp rise is largely attributed to tariffs implemented during the Trump administration, which came into effect in early April, pushing May’s revenue to over three times the average monthly intake for 2024. The increase in tariff collections highlights the ongoing impact of trade policies on federal revenue streams.
In addition to tariffs, total government tax receipts climbed 15%, reaching $371.2 billion in May compared to $323.6 billion the previous year. Despite this growth, tariff revenue remains a minor component of overall federal finances, constituting just 3% of the $687.2 billion government expenditure recorded for the month. This disparity underscores the scale of U.S. fiscal outlays relative to tariff-generated income.
Treasury officials noted that improved fiscal metrics were also supported by lower debt servicing costs, driven by reduced interest payments on inflation-indexed securities and declining short-term Treasury bill rates. However, the persistent challenge of rising interest expenses remains evident, with May’s interest payments totaling $92.2 billion. The annual interest burden now approaches $1.2 trillion, nearing the magnitude of Social Security spending and highlighting ongoing concerns about the sustainability of U.S. public debt.