by Cryptopolitan at Insights
The Trump administration’s Treasury claims its tariff strategy and tighter control of government spending are finally working to reduce the country’s massive trade deficit, according to internal analysis by staff members.
The officials said it’s a mix of import duties and slower public spending that is now apparently working to narrow the fiscal gap. During the three months ending in June, government outlays rose just 0.2% compared to last year, a huge plunge from previous quarters, when increases ranged between 7.1% and 28.5%.
In the third quarter this year, spending was down 2.5% compared with a year earlier.
The Treasury said that tariff revenues will bring in around $300 billion in 2025, with projections climbing to $400 billion in 2026 if monthly inflows continue.
“We are going to be in much better shape than people think,” said Joe Lavorgna, economic counsellor to Treasury Secretary Scott Bessent. “Most of the time people come in and think it’s business as usual, but there’s no question that the Trump administration has made rapid progress on tariffs.”