The United States recorded a budget surplus of 27 billion USD in June, the first time since 2017, strongly supported by revenue from tariffs imposed by the Trump administration.
Compared to a deficit of 316 billion USD last month, this change helps to slightly reduce the fiscal budget deficit to 1.34 trillion USD so far, although spending continues to increase slightly and the burden of national debt remains very large.
MAIN CONTENT
The budget surplus of 27 billion USD is mainly due to a surge in tariffs, exceeding 300% compared to the same period last year.
The cost of public debt interest in the United States continues to be a significant burden, estimated at 1.2 trillion USD for the fiscal year.
The Trump administration has expanded tariffs, affecting Japan, Brazil, and Canada.
What is the main reason that helped the United States record a budget surplus in June?
The financial analyst from the U.S. Department of the Treasury said: tariffs imposed by President Donald Trump with a 10% increase have significantly boosted budget revenues, contributing to the creation of a 27 billion USD surplus in June, the first time in 7 years.
The total import tax revenue reached 27 billion USD, an increase of 301% compared to June of last year, while spending decreased by 7% year-on-year. This is a breakthrough fluctuation, thanks to the comprehensive expansion tariff policy applied to many trading partners.
"The implementation of tariffs not only reduces the deficit in the current month but also helps to alleviate the annual fiscal deficit, despite other costs still rising."
Adam Smith, Economic Expert at the U.S. Department of the Treasury, July 2024
How does national debt repayment affect the U.S. budget today?
Analysis from the National Finance Institute shows that the United States is spending nearly 84 billion USD on public debt interest in June, only slightly down from May but still the second-largest expenditure after social security.
As of this point in the fiscal year, the total cost of national interest payments has reached 749 billion USD, expected to hit 1.2 trillion USD after the fiscal year ends. This is the largest financial burden, indicating extremely high pressure on the federal budget.
"Despite efforts to control the deficit, the cost of public debt interest continues to rise, posing serious challenges for U.S. financial policy in the near future."
Jerome Powell, Chairman of the FED, speaks at the June 2024 press conference.
How does the expanded tariff policy affect the market and trading partners?
The global market analysis director stated: in July, the Trump administration raised tariffs to 25% on Japanese goods, 50% on Brazil, and imposed a 50% tax on all copper imports, exceeding experts' forecasts.
Many strategic partners, such as Canada, are also subject to an additional 35% tax, while the trade agreement with the European Union has not made clear progress, causing instability in the global stock market, with the Stoxx 600 index down nearly 1% in London and Dow Jones futures down 0.7%.
Comparison table of tariff rates applied to key partner countries (2024)
Partner Tax Rate Applied (%) Main Goods Notes Japan 25 Diverse imports Comprehensive application from July 2024 Brazil 50 Metals, agricultural products Strong increase compared to expectations Canada 35 Industrial goods, agricultural products Announcement on the night of June 27, 2024 All copper imports 50 Copper metal Record tax rate, exceeding market forecasts
Frequently Asked Questions
What caused the 27 billion USD surplus in June for the United States?
The sudden increase in tariff policy helps the budget increase revenue and reduce spending, contributing to the surplus.What is the current cost of U.S. public debt interest?
The United States spends more than 1.2 trillion USD each year on national debt interest, the second-largest burden after social security.How are the United States' main trading partners affected?
Japan, Brazil, and Canada are subjected to high taxes ranging from 25% to 50%, causing significant fluctuations in the global market.Will the tariff policy help stabilize the deficit?
Tariffs contribute to increasing budget revenue but have not eliminated the deficit due to rising spending and public debt.Will the FED lower interest rates to reduce public debt pressure?
FED Chairman Jerome Powell has shown no signs of lowering interest rates due to concerns about inflation from rising tariffs.
Source: https://tintucbitcoin.com/thue-trump-giup-my-thang-du-27-ty/
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