Since early 2025, tariffs imposed under President Trump have produced record-breaking customs revenues for the U.S. government.
In July alone, collections reached nearly $28 billion, the highest monthly haul of the year. So far in fiscal 2025, total tariff revenue has surpassed $150 billion, already setting a new annual record .
A major policy shift began on April 2, when Trump unveiled sweeping “Liberation Day” tariffs.
These included a 10 percent baseline duty on most imports and higher rates—up to 50 percent—on items like steel, autos, and copper.
By April, the average effective tariff rate climbed from about 2.5 percent to nearly 27 percent—a historic high .
In just the second quarter, customs revenue totalled roughly $64 billion, nearly four times the previous year’s haul for the same period.
These tariffs now account for about 5 percent of federal revenue, compared with the historical norm of around 2 percent.
Treasury officials forecast end‑of‑year totals could exceed $200 billion, with expectations topping $300 billion in total annual receipts.
While the gains are substantial, critics argue the economic impact may offset the revenue benefit.
Consumer goods companies have raised product prices, and manufacturing firms are under pressure from higher costs and reduced profit margins .
Research shows that only a fraction of the tariff burden reaches foreign exporters—most of it is borne by U.S. importers and, indirectly, American households .
Legal challenges have questioned the administration’s authority to impose these tariffs under emergency powers.
Several court rulings have invalidated parts of the policy, though implementation has continued during ongoing appeals .
In sum, Trump’s tariff program has generated an unprecedented flow of revenue into U.S. coffers in 2025.
However, economic and legal headwinds raise important questions about the long-term effect of this new trade strategy.