Post by : Minna

Photo: Reuters

The United States has achieved a big milestone in its financial history. For the first time, the country has collected over US$100 billion in customs revenue. This happened because of the strong tariff policies introduced by President Donald Trump. Tariffs are extra taxes that the government charges on products coming from other countries. These taxes make foreign products more expensive and are used to protect local industries.

Massive Increase in Revenue

According to a new report from the US Treasury Department, the customs revenue in June alone reached a record high. The country collected US$27.2 billion in tariffs that month. After tax deductions, the net amount was US$26.6 billion. This was a four times increase compared to the same month last year. This means the government earned four times more money from tariffs this year than it did last year.

This huge collection also led to a surprise budget surplus of US$27 billion in June. A budget surplus means the government earned more money than it spent. This is good news for any country as it makes the economy stronger.

Why is This Important?

For President Trump, this news is proof that his tariff policies are working well. He has always said that tariffs are not just a way to manage trade but also a powerful way to strengthen the US economy. Many times, he said that by putting tariffs on goods from other countries, the US will earn “big money,” and now his statement seems to be coming true.

On Tuesday, President Trump again spoke about this matter. He said that the US will start receiving even more money soon. This is because his government is planning to increase tariffs further from August 1. These new tariffs are called “reciprocal tariffs,” meaning they will match the tariffs other countries put on American goods. Trump believes that this will make trade fair for America.

US Treasury Secretary’s Reaction

US Treasury Secretary Scott Bessent was very happy with the latest report. He shared his happiness on platform X (earlier known as Twitter). He said this report proves that Trump’s plan to bring back America’s economic power is working well. He also mentioned that despite collecting so much money in tariffs, there has been no rise in inflation. Inflation is the increase in prices of daily goods and services. If inflation goes up too much, people find it hard to buy things. That is why Bessent’s statement about “no inflation” is important.

In his post, Bessent wrote, “As President Trump works tirelessly to reclaim America’s economic sovereignty, today’s monthly Treasury report reveals historic tariff revenues—and no inflation!” This means he believes the President is working hard to make America strong again in economic matters.

How Do Tariffs Work?

To understand this news better, let’s see how tariffs work. Imagine if America buys toys from another country. If the government puts a tariff on these toys, their prices go up. This makes American-made toys cheaper compared to foreign ones. People then buy local toys, which helps American companies grow. Also, the extra money charged as tariffs goes to the government, which can use it to build roads, schools, hospitals, and for other public services.

Who Pays the Tariffs?

There is always a debate about who pays tariffs. Some experts say that when tariffs are put on foreign goods, the companies exporting those goods to the US have to pay. But many times, these companies increase the prices of their products, and finally, American buyers end up paying more.

Effect on Trade Relations

While tariffs bring money to the country, they can also create tensions with other nations. Countries whose products are taxed heavily may also put tariffs on American goods in response. This is called a trade war. Trade wars can reduce the amount of business between countries. However, President Trump believes that his policies will make other countries come to fair trade agreements with the US.

Impact on the Economy

This recent news shows that tariffs have become a major source of income for the US government. Before, customs duties were not such a big part of the budget, but now they are playing a strong role. With more money coming in, the government can plan new development projects and reduce its debt. But experts also warn that if tariffs remain high for too long, it can hurt American consumers and industries that depend on parts or raw materials from other countries.

President Trump’s government is confident that the upcoming higher tariffs from August 1 will bring even more revenue. However, businesses are waiting to see how this will affect their costs and sales. Many believe that the government will use this money to improve infrastructure, healthcare, and education.
The news about crossing US$100 billion in customs revenue is indeed historic for the United States. It shows how one policy decision can change the economic picture of a country. Whether it will be good or bad in the long run will depend on how the government uses this money and how it manages relations with other countries.
For now, tariffs are not just about trade. They are a powerful tool to strengthen a country’s economy when used wisely. President Trump and his team believe that these steps will help in achieving their goal of “Making America Great Again.”

In the end, this record-breaking customs revenue shows the impact of President Trump’s strong policies on tariffs. With US$100 billion collected, it has become an important part of America’s budget. People and businesses will now be watching carefully to see what happens next after August 1 when the new tariffs begin. Will it bring more money? Will it affect prices? Only time will tell. For now, the government is celebrating this milestone as a big success for the nation.