In April, the U.S. budget surplus grew by 23% to $258 billion, as customs revenue hit a record high.

Taiwan • Business • 05/12 21:30
In April, the U.S. budget surplus grew by 23% to $258 billion, as customs revenue hit a record high.

The U.S. Department of the Treasury released data on May 12, 2025, indicating that the federal government's budget surplus for April 2025 was $258 billion, a 23% increase from the same period last year. This growth was primarily driven by a surge in tax revenue and customs duties before the close of the tax season. Customs revenue in April was $16 billion, marking a record high, and was linked to the high tariff policies the U.S. imposed on China and other countries.

Key Updates

05/13 10:59

US and China Reach 90-Day Tariff Delay Agreement: AI Supply Chain to Benefit, PC and Panel Industries Continue to Face Challenges

On May 12, 2025, the United States and China reached an agreement to temporarily suspend additional tariffs for 90 days and significantly lower punitive tariffs. Andy Ai, head of Taiwan Research at UBS Investment Bank, pointed out that this positively impacts market sentiment, especially in the AI supply chain. However, industries like PCs and panels are still affected by exchange rate fluctuations, advance stockpiling, and low profit margins. The agreement involves the U.S. cutting tariffs from 145% to 30% and China reducing theirs from 125% to 10%.

05/13 10:26

The temporary reduction of tariffs between the US and China has boosted exports, resulting in an 88.88% increase in Wan Hai Lines' profit in the first quarter of 2025 and the expansion of its routes.

On May 13, 2025, the US and China reached a 90-day tariff agreement in Geneva, reducing US tariffs on imports from China to 30% and Chinese tariffs on imports from the US to 10%. This move offers a short-term boost for Chinese exporters. Wan Hai Shipping announced its financial report for the first quarter of 2025, with net profit after tax increased by 88.88% compared to the previous year, and freight rates on Asian routes increased by over 30%. In response to growing demand for cargo space, Wan Hai is expanding its shipping routes and initiating new shipbuilding plans to boost capacity and competitiveness.

05/13 08:57

90-Day U.S. Tariff Suspension Triggers Buying Frenzy: Experts Advise Stockpiling Five Key Categories of Imported Foods

In early May 2025, the U.S. government announced a 90-day suspension of tariffs on imports from multiple countries, serving as a buffer period for negotiations with trade partners. This move sparked a buying frenzy in major cities across the U.S., as consumers feared price hikes once the tariff period ended, leading them to stockpile food and daily necessities. Experts recommended stockpiling grains, coffee, wine, cheese, and cooking oil, since these goods are highly dependent on imports and face significant tariff increases. The market reacted cautiously, with businesses taking a wait-and-see approach during the suspension period, while some accelerated shipments to reduce future tax risks.

05/13 06:59

Due to the new US tariff policy, Samsung is increasing DRAM prices: DDR4 by 20% and DDR5 by 5%. Companies are stocking up in advance, boosting demand.

In May 2025, Samsung Electronics agreed with major clients to raise DRAM prices due to new upcoming US tariff policies, with DDR4 increasing by 20% and DDR5 by 5%. This move was driven by companies stocking up in advance, which increased demand. SK Hynix and Micron also adjusted their prices simultaneously, indicating supply chain and policy pressures in the DRAM market. These adjustments reflect changes in market demand and suppliers' strategic responses.

05/12 21:54

Customs duty revenue in the United States reached a record high of $16 billion in April 2025, easing the pressure on the budget deficit.

In April 2025, the U.S. federal government's customs revenue reached $16 billion, a 130% increase from the same period last year, setting a new monthly high for the past decade. This growth was primarily driven by the Trump administration's 'across-the-board 10% tariff' and significant punitive tariffs on China. This revenue boosted the April budget surplus to $258.4 billion, a 23% increase from the previous year, partially easing the budget deficit pressure.

05/12 21:30

In April, the U.S. budget surplus grew by 23% to $258 billion, as customs revenue hit a record high.

The U.S. Department of the Treasury released data on May 12, 2025, indicating that the federal government's budget surplus for April 2025 was $258 billion, a 23% increase from the same period last year. This growth was primarily driven by a surge in tax revenue and customs duties before the close of the tax season. Customs revenue in April was $16 billion, marking a record high, and was linked to the high tariff policies the U.S. imposed on China and other countries.

05/12 21:30

The new US tariff policy will significantly increase new car prices by April 2025.

In April 2025, new car prices in the United States increased due to a 25% import tariff, with the average transaction price rising by 2.5% compared to March, making it the second highest for the same period in nearly a decade. The tariff has affected imported vehicles from multiple countries, driven by consumer expectations and supply chain pressures. Some manufacturers, such as Ford, have already increased prices on models made in Mexico. Automakers like Nissan and Toyota are adjusting their production strategies to deal with the tariff impact. The UK has obtained lower tariff treatment, while countries such as Japan are facing negotiation challenges. Prices are likely to rise further in the coming months.

05/12 18:56

US-China Tariff Deal Sparks Market Rally: Tesla's Valuation Hits $1 Trillion Again, Foreign Investment Pours into Asian Stocks

On May 12, 2025, the US and China reached a tariff agreement in Geneva, suspending certain punitive tariffs for 90 days to alleviate the trade war. This action triggered a global market response, causing Tesla's stock price to soar and its market value to return to $1 trillion. Foreign capital flowed back into emerging Asian markets, resulting in a net purchase of $4.21 billion within a single week. The Taiwan stock market attracted $2.74 billion, hitting a new high for 2025, while Vietnam's VN-Index rose by 3.3%. Reports analyzed the market impact of this reduction in trade tensions.

05/12 14:57

US-China Tariff Deal Triggers Market Rally: Dow Jumps 1,000 Points, Tech and Luxury Goods Stocks Lead Gains

On May 12, 2025, the United States and China reached an agreement in Geneva, with both parties agreeing to reduce tariffs on each other's goods by 115 percentage points within the next 90 days. U.S. tariffs on Chinese goods will decrease from 145% to 30%, while Chinese tariffs on U.S. goods will drop from 125% to 10%. This move signifies a cooling down of the trade war, leading to a strong reaction in global financial markets. The three major U.S. stock indices increased, with the Dow Jones Industrial Average surging over 1,000 points. Technology and luxury goods stocks led the gains, oil prices increased, and safe-haven assets such as gold and the yen fell.

05/12 12:25

Toyota Faces Pressure from U.S. Tariffs: Strategic Decisions Between Local Production and the Japanese Supply Chain

Starting in 2024, the United States will impose a 25% tariff on imported cars, causing a major impact on Toyota. On May 8, 2025, Toyota President Koji Sato stated that the tariff had already led to a $1.3 billion loss within just two months. Toyota is faced with the choice between maintaining its supply chain in Japan and accelerating overseas production. This decision affects 60,000 small and medium-sized enterprises in Japan. Although Toyota already has 11 factories in the U.S., their capacity is nearly saturated, making it challenging to completely transition to local production. Toyota is considering diversifying its export markets to cope with the uncertainty in the U.S. market.

Dual Boost from Tax Season and Tariffs Drives Surplus Growth

According to the Monthly Treasury Statement released by the U.S. Department of the Treasury, the budget surplus for April 2025 reached $258 billion, an increase of about $48 billion from $210 billion in the same period in 2024, with a year-on-year growth rate of 23%. This surplus mainly stems from two major sources: the concentrated collection of regular taxes such as personal income tax and corporate tax, and a significant rise in customs tariff revenue.

April, being the last month of the U.S. tax season, typically sees a peak in tax revenue. Total revenue for April 2025 reached a record high of $3.11 trillion, while expenditures were $4.159 trillion, both marking the highest records for the same period in history. Despite this, the overall fiscal year (from October 1, 2024, to the end of April 2025) still accumulated a budget deficit of $1.049 trillion, an increase of 23%, or $194 billion compared to the same period last year.

Customs Revenue Hits Record High

The most notable change in April's budget surplus came from the surge in customs revenue. According to Treasury data, customs tariff revenue for April 2025 reached $16 billion, an increase of about $9 billion from $7 billion in the same period in 2024, a growth rate of 130%. This figure not only far exceeds the previous record of $9.6 billion set in the past two years but also becomes the highest single-month customs revenue in at least a decade.

This surge is closely related to the new round of high tariffs imposed by the U.S. government on China and other countries during the month. In early April 2025, then-President Donald Trump announced punitive tariffs of up to 145% on Chinese imports and at least 10% general tariffs on goods from other countries. These measures took effect quickly in April, leading importers to pay a significant amount of tariffs in the short term, boosting customs revenue for the month.

According to Treasury officials, the tariff revenue for April alone amounted to more than $500 million per day. Although President Trump claimed daily tariff revenue reached $2 billion, official data shows the actual figure was approximately a quarter of that.

Overview of Tariff Revenue for the First Seven Months of the Fiscal Year

By the end of April 2025, the U.S. government had collected net customs tariff revenue of $6.3 billion for the first seven months of the fiscal year, an increase of $1.5 billion from $4.8 billion in the same period in 2024, with a year-on-year growth rate of 31%. This growth not only reflects the implementation of new tariff policies but also indicates the increasing proportion of tariffs in the federal government's revenue structure.

In addition to customs revenue, other tax sources also grew. Personal payroll tax withholding increased by 6% to $2.145 trillion, becoming one of the main drivers of overall revenue growth. Additionally, excise tax revenue increased by $10 billion due to the implementation of the stock buyback tax. This tax was part of the Inflation Reduction Act passed by the Biden administration in 2022.

Deficit Changes After Adjusting for Special Factors

Despite the strong performance in April's surplus, the overall fiscal situation still shows an expanding deficit. The Treasury Department pointed out that if the $85 billion in taxes deferred due to California's tax extension in 2024 and the impact of expenditures recorded early due to calendar factors in 2024 are excluded, the actual deficit for the 2025 fiscal year would be about 4% higher than the same period last year.

These adjustments indicate that despite the strong surplus in April, overall fiscal pressure has not eased. Treasury officials emphasized that these surpluses are mainly seasonal phenomena and do not represent a fundamental improvement in the fiscal situation for the entire year.

Changes in Tariff Policy May Affect Future Revenue

It is worth noting that at the end of April, the U.S. and China reached a temporary agreement to temporarily reduce punitive tariffs on each other within the next 90 days. The U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on U.S. goods from 125% to 10%. This agreement may affect customs revenue in the coming months, but it is not yet reflected in April's data.

References

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The U.S. budget surplus increased by 23% in April; does this have any immediate impact on the financial markets?

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