Tariff Revenue Surge Helps Reduce U.S. Deficit, Supreme Court Ruling Becomes Key Future Variable

Odaily News According to data, the U.S. budget deficit for the four months ending in January fell to $697 billion from $840 billion in the same period last year, a decrease of 17%. The U.S. Supreme Court is currently weighing whether Trump has the authority to impose most of the tariffs, and the reduction in the deficit highlights the significant impact of this ruling on government interests. Due to revenue growing faster than expenditures, total revenue increased by 12%, while spending only rose by 2%. From October last year to January this year, tariff revenue totaled $124 billion, an increase of approximately 304% compared to the same period in 2025. Earlier on Wednesday, the Congressional Budget Office estimated that if the tariffs registered as of November 20th remain unchanged over the next decade, tariff revenue would reduce the federal deficit by $3 trillion. However, this is not enough to offset other deficit-increasing factors in Trump's economic plan. The Congressional Budget Office raised its ten-year total deficit forecast by $1.4 trillion.