The U.S. Treasury Department reported that gross national debt has climbed past $37 trillion, hitting the milestone less than eight months after the $36 trillion mark and well ahead of pre-pandemic forecasts. The department’s July budget statement showed the monthly deficit widening 19% from a year earlier to $291 billion. Government spending rose 10% to $630 billion while revenue increased 2% to $338 billion. Customs duties collected under President Donald Trump’s tariff program reached about $28 billion for the month—nearly four times the level in July 2024—pushing tariff revenue for the first ten months of fiscal 2025 to roughly $136 billion, a 116% jump. Even with the record tariff inflow, the cumulative deficit for the fiscal year stands at $1.63 trillion, and interest payments on the public debt have exceeded $1.01 trillion, underscoring the limits of tariffs in narrowing the gap. Trump said the duties are bringing in “trillions of dollars” without fueling inflation and asserted that price pressures are now “hardly any at all.” Treasury Secretary Scott Bessent added that full-year tariff revenue could surpass $300 billion, equivalent to about 1% of GDP.