US: Record Tariff Revenue, but Deficit Widens

US customs tariff revenues recorded a new monthly record in July, reaching $28 billion, an increase of 273% compared to the same month last year, according to the Treasury Department.

However, the monthly budget deficit amounted to $291 billion, up 10% compared to last year. For the ten months to July, the deficit amounts to $1.63 trillion, an amount that is 4% lower compared to last year.

Meanwhile, concerns are growing about the quality of government reports on inflation and employment, following budget and staff cuts at the BLS.

The Consumer Price Index (CPI) remained unchanged in July, at 2.7% on an annual basis.

President Donald Trump has used restrained inflation to bolster his position that consumers will not bear the cost of tariffs.