Trump reaps $50 billion windfall from tariffs as trade partners hold fire: Report

New Delhi,UPDATED: Jul 17, 2025 07:04 IST

US President Donald Trump’s aggressive tariff strategy appears to have paid off — at least in terms of revenue. While many world leaders condemned his sweeping trade measures, most have avoided meaningful retaliation, allowing the US to rake in nearly $50 billion in extra customs revenues with minimal pushback.

“America’s trading partners have largely failed to retaliate,” noted the Financial Times in an assessment, adding that Trump — once taunted for “always chickening out” — is now the one cashing in.

In the four months since Trump escalated his trade war, only China and Canada have mounted significant countermeasures against the global tariffs he imposed. These include a minimum 10% tariff on imports, 50% levies on steel and aluminum, and a 25% tariff on autos, the report said.

Meanwhile, US customs revenue soared to a record $64 billion in the second quarter, according to data released by the US Treasury on Friday, which is a $47 billion increase over the same period last year.

Even China’s retaliation has had limited financial effect. Its revenue from duties on US goods was only 1.9% higher in May 2025 compared to a year earlier. Canada, while vocal in its objections, has yet to release second-quarter data, and its actions have so far been restrained, the Financial Times reported.

The European Union, the world’s largest trading bloc, has drafted counter-tariffs but continues to delay their rollout, now tying them to a fast-approaching August 1 deadline for renewed talks with Washington.

The lack of retaliation has strengthened Trump's position heading into another potential election cycle, as he touts customs revenue as proof of his tough-on-trade stance.

“Some other US trading partners decided against responding in kind,” the FT report noted, “while negotiating with Trump to avoid even higher threatened tariffs.”

Trump allies argue that this approach forced countries to the negotiating table without significant cost to the American economy. Critics, however, warn that the long-term effects on global trade and diplomatic ties could be severe.

Earlier, the Treasury Department reported that US customs duty collections surged again in June as President Donald Trump's tariffs gained steam, topping $100 billion for the first time during a fiscal year and helping to produce a surprise $27 billion budget surplus for the month.

The budget data showed that tariffs are starting to build into a significant revenue contributor for the federal government, with customs duties in June hitting new records, quadrupling to $27.2 billion on a gross basis and $26.6 billion on a net basis after refunds.

- Ends

With inputs from Agencies

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