The U.S. government’s gross national debt has surpassed $37 trillion for the first time, the Treasury Department’s latest daily financing report shows. The milestone arrives less than eight months after the $36 trillion mark and years ahead of pre-pandemic projections that had placed the figure beyond fiscal 2030. Separate Treasury data released this week indicate the federal budget deficit widened 19% from a year earlier to $291 billion in July, erasing a surplus in June. Outlays climbed 10% to a record $630 billion, led by Social Security, health-care programs and rising interest costs, while receipts rose 2% to $338 billion. Customs duties collected in July jumped to roughly $27.7 billion—almost triple the year-earlier total—reflecting higher tariff rates on Chinese and other imports. For the first 10 months of fiscal 2025, tariff revenue has reached $135.7 billion, up 116% from the same period last year. Treasury Secretary Scott Bessent said the full-year take could "substantially" exceed his earlier $300 billion estimate, noting that each $300 billion equals about 1 percent of U.S. GDP. The surge in duties was insufficient to offset broader spending growth. Interest payments on publicly held debt topped $1.01 trillion over the 10-month period, underscoring how higher borrowing costs are squeezing the budget. The cumulative deficit for the fiscal year rose to $1.63 trillion, keeping the government on pace for one of its largest shortfalls on record. President Donald Trump has argued that the tariffs are boosting federal revenue without fueling inflation, asserting this week that price pressures are now "hardly" evident. While lower gasoline prices pulled energy costs down in July, economists note that some tariff-sensitive goods—such as furniture and auto parts—continued to show price increases even as overall consumer spending remained solid.