Surge in tariff revenue helps reduce U.S. deficit; Supreme Court ruling becomes a key variable for the future

Odaily Planet Daily reports that data shows that over the four months ending in January, the U.S. budget deficit decreased from $840 billion in the same period last year to $697 billion, a 17% decline. Currently, the U.S. Supreme Court is weighing whether Trump has the authority to impose most tariffs, and the reduction in the deficit highlights the significant impact this ruling could have on government interests. Due to revenue growing faster than expenditures, total revenue increased by 12%, while spending only grew by 2%. From October last year to January this year, tariff revenue totaled $124 billion, a roughly 304% increase compared to the same period in 2025. Earlier Wednesday, the Congressional Budget Office estimated that if the tariffs registered by November 20 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 CBO has raised its ten-year total deficit forecast by $1.4 trillion.