US President Donald Trump’s broad tariffs have generated a substantial $50 billion in additional revenue, with the majority of US trade partners refraining from retaliation. Only China and Canada have pushed back in meaningful ways. Others, such as the European Union, have restrained themselves. This failure of substantial resistance has given Trump a boost and has contributed to driving US customs revenues to new highs.
The most recent Treasury figures reveal a surprise $27 billion budget surplus for June alone, fueled chiefly by tariff revenues. While critics threaten longer-term harm to global trade relationships, Trump supporters say the policy demonstrates his aggressive trade policy works, at least in terms of collecting revenue.
Tariffs Generate Unprecedented Revenue
The US Treasury announced an explosive increase in customs revenues for the second quarter. Collections totalled $64 billion—a $47 billion increase from last year at the same time. This was the highest on record for a quarter of tariffs.
One of the main drivers was the sharp rise in tariff levels. Trump’s actions consist of at least 10% on virtually all imports, 50% on steel and aluminium, and 25% on cars. These bold actions drove gross customs duty in June alone to $27.2 billion. Net collections after refunds remained at $26.6 billion.
China and Canada Stand Alone on Retaliation
China and Canada alone have made meaningful pushes back against Trump’s trade onslaught. But their bite has been minimal. In China, tariff revenue on US imports increased only 1.9% year-over-year in May 2025. Canada protested vociferously but did little to release second-quarter figures. Its response thus far remains contained.
Instead, other US trade partners have, for the most part, exercised restraint. As reported by the Financial Times, “America’s trading partners have largely failed to retaliate.” Most preferred talking over tough action.
EU Delays Action, Waits for Talks
The world’s biggest trade bloc, the European Union, has drawn up counter-tariffs but held back on imposing them. EU leaders have now made retaliation contingent on an August 1 deadline for renewed negotiations with Washington. This reluctance betrays a pause in strategy rather than confrontation.
Political Boost for Trump
The revenue surge arrives politically opportune time. Trump has long been accused of folding under hardline trade actions. But the new numbers turn the narrative on its head. As FT writes, Trump—formerly ridiculed for “always chickening out”—is now “cashing in.”
Supporters say his strategy pushed competitors to the negotiating table. They contend the US won robust financial returns with little economic blowback.
Critics Warn of Long-Term Risks
Even as the short-term victory was celebrated, critics were not convinced. They predicted fraying diplomatic relations and long-term damage to the stability of world trade.
But with more than $100 billion worth of tariffs amassed in one fiscal year, Trump has proof that his tariff bet is paying off—so far, at least.
