April’s federal budget performance saw a major boost from record-breaking tariff receipts, helping to reduce the monthly deficit. This report details the surge in customs duties, shifts in government receipts and spending, and the ongoing impact of high interest payments on national debt.
Tariffs Surge Following Trump’s 10% Import Duty
U.S. customs duties reached $16.3 billion in April — the highest monthly total on record and an 86% increase from March’s $8.75 billion. Compared to April 2024, tariff revenue more than doubled from $7.1 billion. The sharp jump followed the implementation of a 10% across-the-board import tariff by former President Donald Trump, which took effect on April 2.
These new duties came in addition to existing targeted tariffs already in place and immediately elevated revenue intake. Year-to-date, total tariff collections now stand at $63.3 billion — an 18% increase over the same period last year.
April Surplus Grows as Receipts Climb and Outlays Ease
The Treasury recorded a $258.4 billion surplus for April, up 23% from the previous year. This surplus, largely timed with the income tax filing deadline, provided a temporary cushion for federal finances. It helped cut the fiscal year-to-date deficit to $1.05 trillion — still 13% higher than at the same point in 2024, but narrowing for the month.
Government receipts in April were up 10% year-over-year, while federal outlays declined 4%. On a cumulative basis, receipts are up 5% for the fiscal year so far, while spending has grown 9%.
Interest Payments Remain a Heavy Burden
Despite the April improvement, rising interest payments on the national debt continue to weigh heavily on the budget. Net interest expenses hit $89 billion in April alone, making it the second-largest spending category after Social Security. For the fiscal year, net interest costs have totaled $579 billion.
The growing burden of servicing the $36.2 trillion U.S. debt highlights a key vulnerability in the federal budget, even as tariff revenue provides a short-term lift.
