
Tariffs Up, Treasury Down: Why Washington’s Red Ink Matter
The U.S. federal deficit widened to $291 billion in July, a 19% year-on-year rise, despite tariff revenues tripling under Trump’s trade regime. Customs duties reached $21 billion, but were eclipsed by surging healthcare, Social Security, and debt service costs. With the year-to-date shortfall at $1.63 trillion, Washington faces a structural imbalance that tariff windfalls cannot offset. Fiscal sustainability now collides with strategic ambition, reshaping America’s capacity to fund defense, sustain alliances, and project power abroad.


