Tariff Windfall Shrinks Deficit as Court Decision Looms

The U.S. posted a smaller January budget deficit, helped by a sharp surge in tariff revenue. Customs duties totaled $30 billion for the month.

Transcript

00:00The U.S. posted a smaller January budget deficit, held by a sharp surge in tariff revenue.

00:06Customs duties totaled $30 billion for the month and $124 billion year-to-date,

00:11more than triple the same period last year after sweeping tariffs were imposed in April 2025.

00:16The deficit fell 26% for the month and 17% year-to-date,

00:21though interest on the $38.6 trillion national debt remains a major financial strain.

00:26A pending Supreme Court decision could jeopardize those gains if the tariffs are struck down

00:31and the government is forced to reimburse collected duties.