Ammon News - The US government saw its budget deficit widen from the prior year in the October to June period as spending rose, but customs duties surged to a record after President Donald Trump's wide-ranging tariffs on imports.

The budget gap widened by $64 billion to $1.3 trillion for the first nine months of the fiscal year, said the Treasury Department on Friday.

This came as increased expenditures outweighed receipts, with greater spending seen in areas like Medicare, the government health care program for seniors, and Medicaid, the federal program for low-income Americans.

There were also higher expenses from interest on the public debt, which hit a record $921 billion.

But collections of customs duties also ballooned from $61 billion to $113 billion a record surpassing levels seen in past fiscal years.

In June alone, the US government collected $27 billion in customs duties, up from $7 billion in 2024.

The jump came after Trump imposed a 10 percent tariff on imports from almost all trading partners in April, alongside steeper rates on Chinese goods, steel, aluminum and autos since returning to the presidency.

The Trump administration has repeatedly pointed to levies as a revenue driver. AFP