The Congressional Budget Office reported federal revenues are starting to surge, as they are up about 18% since June.

The Trump administration's tariffs promise significant federal revenue, but rising inflation raises concerns. As the Federal Reserve grapples with economic pressures, the question remains: do the fiscal benefits outweigh the economic costs for American consumers?

Eliminating $2 trillion annual deficit would require increasing revenue, decreasing spending, or a combination of the two.

Despite early criticism that his approach to trade was erratic, senior officials now say the strategy is yielding stronger negotiating positions.

The higher rates suggest Trump may raise tariffs on certain countries beyond the levels outlined in his April 2 “Liberation Day” announcement, which set a new baseline tariff of 10%—about three times the previous rate—and imposed steep duties on nations with significant trade imbalances with the U.S.

Just a week after President Donald Trump signed the Big Beautiful Bill into law, the U.S. Treasury surprised markets with a rare budget surplus for June 2025. The federal government reported a $27 billion surplusthe

House Speaker Mike Johnson touted an alleged federal budget surplus for June 2025, the first since 2017, and said with President Trump's tariff policies and the "Big, Beautiful Bill" that will become more common.

Economists broadly expect the tariffs to add 1 to 1.5 percentage points to the inflation rate by the end of the year, which could leave it between 3.5% and 4%. Inflation peaked at 9% in 2022 and got as low as 2.3% in April of this year — almost at the Federal Reserve's target of 2% or so.

Why It Matters: This news comes on the heels of the U.S. Customs and Border Protection (CBP) collecting over $106 billion in customs revenue since Trump’s inauguration, with a significant portion attributed to the administration’s tariffs.