Trump’s Tariff War Generates $108 Billion in U.S. Customs Revenue — Now Fourth-Largest Federal Income Source

The Trump administration’s aggressive tariff strategy has yielded $108 billion in customs revenue so far in fiscal year 2025, according to the U.S. Treasury Department and Customs and Border Protection. This marks the first time in history that tariffs have become the fourth-largest source of federal income, behind individual income taxes, corporate taxes, and non-withheld receipts.

June alone saw a record $26.6 billion in net customs duties, nearly quadrupling year-over-year. The surge is attributed to sweeping tariffs ranging from 10% to 50% on imports from over two dozen countries, including Canada, Mexico, Brazil, and the European Union.

Treasury Secretary Scott Bessent projects tariff revenue could reach $300 billion by year-end, citing expanded duties on copper, semiconductors, and pharmaceuticals. Economists warn, however, that while tariffs boost short-term revenue, they may disrupt global supply chains and increase consumer costs over time.

President Trump has defended the policy, calling it a “reciprocal” approach to protect American industries and reduce trade deficits. Critics argue the strategy risks retaliation and economic instability.