U.S. tariff revenue has surged more than 300% so far this fiscal year.

The U.S. government's fiscal deficit narrowed in January compared to last year, while tariff revenue surged. The Treasury Department reported that customs duties collected totaled $30 billion in January, bringing the year-to-date total to $124 billion, a 304% increase compared to the same period in 2025. These tariffs helped slow the growth of the budget deficit. In the fourth month of the fiscal year, the deficit was approximately $95 billion, about 26% lower than the same period last year. As of now, the federal government deficit stands at $697 billion, a 17% decrease compared to 2025. On a calendar-adjusted basis, the deficit has decreased by 21%.