Surging tariff revenues help reduce the US deficit; Supreme Court ruling becomes a key variable for the future.

Data shows that in the four months ending in January, the U.S. budget deficit fell to $697 billion from $840 billion in the same period last year, a decrease of 17%. The U.S. Supreme Court is currently weighing whether Trump has the authority to impose most of the tariffs, and the reduction in the deficit highlights the significant impact of this ruling on the government's interests. Total revenue grew by 12%, while spending grew by only 2%, as revenue grew faster than spending. From October last year to January this year, tariff revenue totaled $124 billion, an increase of approximately 304% compared to the same period in 2025. Earlier on Wednesday, the Congressional Budget Office estimated that if the tariffs registered as of November 20 remain unchanged over the next decade, tariff revenue would reduce the federal deficit by $3 trillion. However, this is not enough to offset other deficit-increasing factors in Trump's economic plan. The Congressional Budget Office raised its ten-year total deficit forecast by $1.4 trillion.