FX.co ★ US Budget Gap Widens to $291B

In July 2025, the United States government experienced a budget deficit of $291 billion. This occurred despite a $21 billion increase in customs duty revenue resulting from higher tariffs introduced by President Trump, as expenditures exceeded incoming revenues. The deficit was $47 billion larger than in the same month the previous year, with government receipts increasing by 2% to $338 billion, while spending surged 10% to a record $630 billion for July. According to the Treasury Department, the shorter month with fewer business days led to a $20 billion reduction in receipts; when adjusted to account for this, the deficit would be approximately $271 billion. Customs duties significantly rose to about $28 billion compared to $8 billion the year before due to the increased tariffs. Cumulatively, over the first 10 months of the fiscal year, the deficit escalated to $1.629 trillion, marking a 7% rise compared to the same timeframe the previous year. During this period, receipts reached an unprecedented $4.347 trillion, increasing by 6%, while expenditures grew 7% to a record $5.975 trillion.