The US budget deficit narrowed just slightly over the past year, official data showed Thursday — despite a surge in customs revenues, which hit a record as President Donald Trump imposed wide-ranging tariffs since January.

The overall deficit shrank by two percent, or $41 billion, for the 2025 fiscal year ending in September, the Treasury Department said.

Interest paid on the public debt climbed to a record, at $1.2 trillion, while health spending picked up.

But these were not offset by a notable jump in collected customs duties, including tariffs.

The amount of such duties taken in rocketed from $84 billion to $202 billion year-on-year, Treasury data showed.

Taxes paid by individuals also picked up by six percent over the year to $3.5 trillion, from $3.3 trillion.

But gross corporat

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