US Deficit Grows to $291 Billion in July Despite Record Tariff Revenues

Trump’s tariff windfall hit a new record—but it wasn’t enough to offset higher spending, driven in part by high debt servicing costs.

The U.S. flag flies in a shipyard at the Port of Long Beach, Calif., on Sept. 29, 2018. Mark Ralston/AFP/Getty Images

The U.S. budget deficit widened in July, climbing to $291 billion even as the government collected an unprecedented amount from tariffs, according to Treasury Department data released on Aug. 12.

The shortfall—up from $244 billion a year earlier—came as federal spending rose at a much faster pace than revenues. Outlays for the month hit $630 billion, a record high for July, reflecting higher interest costs on the national debt and increased spending across a range of programs.