IMF Predicts US Fiscal Deficit to Shrink in 2025 Due to Tariffs

The United States incurred a $1.8 trillion national deficit in fiscal year 2024, the largest this century except for in 2020 and 2021.

An exterior view of the building of the International Monetary Fund in Washington on March 27, 2020. Oliver Douliery/AFP via Getty Images

The Trump administration’s tariff policies are expected to bring down the fiscal deficit of the United States this year, the International Monetary Fund (IMF) said in an April 23 report.

Fiscal deficit, also known as national deficit, occurs when a country’s government spends more money than it earns during a fiscal year.