The US Department of the Treasury stated on Monday (May 12) that due to a significant increase in import tariffs, tariff revenue in April increased by $7.6 billion compared to March. The total tariff revenue in April reached a monthly record of $16.3 billion.
Since the beginning of the current fiscal year in October last year, the US has collected $63.3 billion in tariffs, an increase of $15.4 billion compared to the same period last year.
The tariff revenue for April from the US Treasury was $16.3 billion, an increase of $9 billion compared to the same period last year, a growth rate of 130%. According to data compiled by Bloomberg, this is the highest monthly customs revenue in at least a decade.
A Treasury official remarked that the increase in tariff revenue reflects the impact of the Trump administration’s tariff adjustments.
The Wall Street Journal reported that it typically takes about a month for new tariffs to be reflected as revenue in government accounts. The increase in tariff revenue in April may reflect a series of tariffs imposed by the Trump administration earlier this year, including tariffs on steel and aluminum, products from Mexico and Canada, and the introduction of retaliatory tariffs that same month.
While tariff revenue is favorable to the government’s balance sheet, the deficit for the fiscal year up to April is still around $1.05 trillion, an expansion of about 23% from the previous year.
Starting from March 4, the US imposed a 25% import tariff on goods from Mexico and Canada, excluding energy products and potassium fertilizers, which are subject to a 10% tariff. Trump stated that this move was to punish these countries for allowing fentanyl and illegal immigrants to enter the US.
The Trump administration subsequently suspended the imposition of tariffs on goods that enjoy duty-free trade benefits under the US-Mexico-Canada Agreement (USMCA). Many goods entering the US do not meet USMCA requirements, thus new tariffs must be paid.
On March 12, the US imposed a 25% tariff on all imported steel and aluminum.
On April 3, the US imposed a 25% tariff on imported automobiles. On May 3, the US imposed a 25% tariff on imported auto parts, but mentioned that if the vehicles are manufactured in the US, automakers could enjoy a lower tariff rate.
On April 2, Trump announced a 10% baseline tariff on almost all goods imported to the US from various countries, along with varying retaliatory tariffs imposed on dozens of trading partners. On April 9, he suspended the retaliatory tariffs for 90 days to engage in trade negotiations with other countries. On the same day, Trump increased tariffs on Chinese goods to 145%.
On May 12, the Trump administration agreed to temporarily reduce the newly imposed tariffs on Chinese imported goods from 145% to 30%. Beijing agreed to lower tariffs on US goods from 125% to 10%. This tariff reduction will last for 90 days, during which both sides will continue negotiations.