The U.S. July budget deficit surged to $291 billion, a 19% increase from July 2024, despite higher tariff revenues. Increased government spending, up 10% to a record $630 billion, outpaced a 2% rise in receipts. While tariffs boosted customs receipts by nearly $21 billion, this was offset by higher outlays. The year-to-date deficit stands at $1.629 trillion, a 7% increase. Higher prices for some tariff-sensitive goods were noted, though overall inflation was tempered by lower gasoline prices.

Prepared by Christopher Adams and reviewed by editorial team.