The U.S. budget deficit for August fell $35 billion or 9% from a year earlier to $345 billion as President Donald Trump’s tariffs pushed net customs receipts up by about $22.5 billion for the month, the Treasury Department said on Thursday.

With one month to go in the 2025 fiscal year, the year-to-date deficit rose $76 billion, or 4% to $1.973 trillion.

Receipts for August rose $38 billion or 12% to $344 billion, while August outlays grew $2 billion to $689 billion. Both receipts and outlays reached new records for the month.

August net customs receipts also reached an all-time monthly record of $29.5 billion, up from $7 billion a year earlier, driven by Trump’s tariffs.

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(Reporting by David Lawder; Editing by Andrea Ricci)