The US government reported a $27 billion budget surplus in June, driven by a sharp rise in customs duties revenue, which hit a record $27.2 billion. This boost in tariff collections, especially from policies initiated under President Trump, helped push June budget receipts up 13% to $526 billion, while spending dropped 7% to $499 billion. However, adjusting for calendar shifts, the Treasury noted that June would have shown a $70 billion deficit. Year-to-date, the overall budget deficit rose 5% to $1.337 trillion, due to increased outlays on healthcare, Social Security, defense, and interest on debt. Customs receipts for the fiscal year reached a record $113.3 billion gross, signaling growing reliance on tariffs as a revenue source. Treasury officials anticipate further growth in tariff collections, possibly reaching $300 billion by the end of 2025. The administration is also preparing additional tariffs, including new sector-based duties on semiconductors and pharmaceuticals.