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

Taiwan • Business • 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.

Key Updates

05/13 10:59

The United States has reduced the tariff on small packages from China to 54%, ended the de minimis tax exemption policy, and maintained a fixed fee of $100 per package.

On May 13, 2025, the White House announced that starting May 14, the tariff on small parcels valued at no more than $800 sent from mainland China and Hong Kong to the United States will be reduced from 120% to 54%. However, a fixed fee of $100 per parcel will still apply, and the planned increase to $200 per parcel in June has been canceled. This move ends the small parcel exemption policy that has been in place since 1938, aiming to tackle the misuse of the system for smuggling and dumping.

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

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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.

Surge in Tariff Revenue: A Historic High

According to data from the U.S. Department of the Treasury, customs revenue in April 2025 reached $16 billion, more than double the $7 billion from the same period in 2024, and an 86% increase from $8.75 billion in March 2025. This marks the highest monthly tariff revenue for the U.S. since the 2000s.

This surge is primarily attributed to the "reciprocal tariffs" policy announced by President Trump on April 2, which imposed new tariff measures on several trade partners, including China. Although tariffs on most countries were suspended a week later, the high tariffs on China remained in effect and were further increased on April 9, causing bilateral tariffs to reach a peak of 125% to 145%. These measures began to reflect in customs revenue around mid-April.

Additionally, the Trump administration implemented a "universal 10% baseline tariff" on April 2, which applied to all imported goods, further expanding the tax base. According to Treasury officials, this policy was one of the main drivers of the surge in April's tariff revenue.

Contribution of Tariff Revenue to Budget Surplus

April is typically a peak tax collection period for the U.S. federal government, as the deadline for personal income tax filings falls in mid-month. However, April 2025's surplus performance was particularly impressive. According to Treasury data, the federal budget surplus for the month reached $258.4 billion, a 23% increase from $210 billion in the same period in 2024, exceeding market expectations.

One of the contributors to this surplus was the surge in tariff revenue. According to reports from TipRanks and CNBC, the $16 billion in customs revenue made a direct contribution to the surplus, boosting the government's total income for the month along with seasonal income tax revenue.

Nevertheless, the overall fiscal situation still shows deficit pressures. As of the end of April 2025, the cumulative deficit for the first seven months of the 2025 fiscal year (starting from October 2024) reached $1.049 trillion, a 13% increase from the same period last year. This indicates that even with a strong surplus performance in April, the overall fiscal situation remains structurally imbalanced.

Cumulative Annual Tariff Revenue and Fiscal Contribution

As of the end of April 2025, cumulative customs revenue for the 2025 fiscal year had reached $63.3 billion, a 32% increase from $48 billion in the same period in 2024. This growth reflects the impact of the new round of tariff policies, particularly the high tariffs on China and the universal 10% baseline rate.

According to a report from the Economic Times, this additional revenue has somewhat eased the pressure of the expanding deficit. However, Treasury officials noted that if the $8.5 billion in deferred taxes from California's delayed payments in 2024 were excluded, the actual deficit increase would be 4%.

Future Direction of Tariff Policy and Short-term Outlook

Although April's tariff revenue reached a new high, revenue in the coming months may decline. According to reports from Bloomberg and China Briefing, the U.S. and China reached an agreement in early May to significantly lower bilateral punitive tariffs from 125%-145% to 10%-30% for 90 days. This agreement may lead to a decrease in customs revenue in the coming months.

Additionally, according to estimates from Yale University's Budget Lab, if the current tariff policy in 2025 continues until 2035, it could bring $2.7 trillion in traditional budget revenue to the federal government. However, this estimate does not account for policy changes and adjustments in economic behavior, and the current U.S.-China tariff agreement is only a temporary measure, leaving significant uncertainty for the future.

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In April, U.S. tariff revenues surged. What impact does this have on U.S.-China trade relations?