The U.S. Treasury Department reported that the federal government posted a $291.1 billion budget deficit in July, far wider than the consensus forecast of about $239 billion and a sharp reversal from the $27 billion surplus registered in June. Government receipts edged up 2 % from a year earlier to $338 billion, aided by a record $27.7–$28 billion in customs-duty collections tied to the 145 % tariff on Chinese imports. Spending, however, climbed 10 % to a July-record $630 billion, leaving the monthly deficit roughly 19 % larger than in July 2024. After the first 10 months of fiscal 2025, the deficit totals $1.629 trillion, about 7 % higher than in the same period a year earlier, even though tariff receipts have more than doubled to $135.7 billion. Rising interest costs and entitlement outlays continue to dominate the government’s balance sheet, underscoring the limited effect of higher trade levies on U.S. finances.