US Deficit Shrank to $1.7 Trillion in 2025 on Tariff Jump (1)

Jan. 13, 2026, 8:53 PM UTC

The US budget deficit shrank to $1.67 trillion for the 2025 calendar year, the smallest in three years, thanks mainly to a record surge in customs revenue.

The deficit for the month of December was $145 billion, Treasury Department data showed on Tuesday. For the first three months of the 2026 fiscal year, which began Oct. 1, the shortfall came in at $602 billion. Last month saw customs duties slow to $28 billion, the smallest haul since July.

While President Donald Trump’s tariff hikes on major trading partners have boosted revenue, his signature tax legislation is starting to have ...

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