Datanomics: Donald Trump's trade tariffs bring windfall gains for US

US customs revenue surged 153% in FY25 as tariff rates spiked to decade highs, lifting India's import share to a 10-year peak while China's slipped below 10% for the first time since 2015

The revenue earned by the United States (US) from Customs duties jumped from $77 billion in the financial year 2023-24 (the US federal government’s financial year runs from October 1- September 30) to $194.86 billion in FY25, registering a rise of 153 per cent. The share of customs duties’ revenue in total receipts of the US in FY25 was 3.72 per cent, up from 1.57 per cent in the last financial year. 

 

Sudden spike 

In FY16, the US earned $34.85 billion from Customs duties. The share of revenue from Customs ranged from sub one to 3 per cent, and only occasionally breaching the 3 per cent mark from then till April, 2025. However, since May this financial year, the share has gone past five per cent, which reached 8.57 per cent in August. The share dropped in September due to a sudden jump in the personal and corporate income tax receipts, despite earnings from customs reaching $29.68 billion from $29.5 billion a month ago. 

 

 

On the rise 

The average monthly tariff rate levied on imports into the US has risen from 2.43 per cent in October, 2023 to 9.76 per cent and 9.21 per cent in June and July, 2025 respectively. The average tariff rate more than doubled to 5.51 per cent in April, 2025 year-on-year. The average tariff rate remained between 2-2.5 per cent in FY24. 

 

 

India's share rises 

The share of India in the US’ goods imports reached 3.3 per cent in the second quarter of calendar year 2025 (Q2 CY2025) — the highest share in ten years. Meanwhile, the share of China went below 10 per cent in Q2CY25, also for the first time since 2015. The European Union, Mexico, Canada, and China were the top goods import sources for the US in 2025 (Jan-June).