Trump Delivers First June Budget Surplus Since 2017, Thanks To Tariffs

The Treasury Department announced on Friday that the U.S. government recorded a surplus of just over $27 billion in June, a turnaround driven in large part by a significant increase in tariff revenues. 

The Details:  The surplus came after a $316 billion deficit in May and brings the total deficit for the current fiscal year to $1.34 trillion, which is 5% higher than the same period last year, according to CNBC. 

However, after adjusting for the calendar, the deficit is actually down by 1%. With three months left in the fiscal year, receipts for June were up 13% from a year ago, while government spending dropped by 7%.

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Tariff collections have played a major role, with customs duties hitting $27 billion in June—more than three times what was collected in June 2024—following new tariffs imposed by Trump earlier this year. 

For the year, tariff revenues have reached $113 billion, up 86% from last year. 

Despite the unexpected surplus, the federal government continues to face challenges from high interest payments on its $36 trillion national debt, which totaled $84 billion in June alone. 

Additionally, the recently passed spending bill is expected to add about $3.4 trillion to the national debt over the next decade, according to the Congressional Budget Office.

Why It Matters: Wall Street ended the week on a cautious note, as stocks pulled back on Friday after President Trump indicated a tougher approach to trade policy. 

A formal letter detailing new tariff plans is expected to be sent to European Union leaders soon, following Trump's recent announcement of a 35% tariff on Canadian imports beginning Aug. 1 and broad tariffs of 15% to 20% on most other trading partners.

The S&P 500, as tracked by the SPDR S&P 500 ETF SPY, slipped by 0.2% and the Nasdaq Composite, tracked by the Invesco QQQ Trust QQQ was unchanged, both having reached new record highs on Thursday.  

The Dow Jones Industrial Average dropped nearly 300 points, weighed down by renewed concerns over a possible escalation in global trade tensions and weak performance in industrial and financial sectors. 

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