Historic Surge in U.S. Tariff Revenues Despite Deficit
U.S. tariff revenues hit a record high in July amid the ongoing expansion of the fiscal deficit.

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United States
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United States

U.S. Tariff Revenues Jump to Record High Amid Worsening Fiscal Deficit
Data from the U.S. Treasury Department released on Tuesday showed that tariff revenues rose in July to $28 billion,

marking a massive 273% annual increase.

The monthly budget deficit stood at $291 billion, up 10% from the same month last year after accounting for timing adjustments.
With the fiscal year ending in September, the United States is on track to post another massive annual deficit.

The deficit for the first ten months of the fiscal year reached $1.63 trillion,

down only 4% from the previous year after adjusting data and excluding the impact of deferred tax payments.
According to the Treasury, tariff revenues since the start of the fiscal year have totaled $142 billion.

The surge in June contributed to a rare monthly surplus of $27 billion — the first for June since 2015.

Treasury Secretary Scott Bessent expects tariff revenues to exceed $300 billion in 2025, noting they could surpass 1% of GDP.

China

Global EV Sales See Slowest Growth Since January as Chinese Market Cools
Data from market research firm “Rho Motion” showed that global electric vehicle sales rose 21% year-on-year in July,

marking the slowest growth rate since January, compared to a 25% increase in June.

This slowdown is driven largely by a notable deceleration in China, the world’s largest auto market.
The data revealed that China, which accounts for more than half of global EV sales, saw growth slow to 12% in July,

down from an average monthly rate of 36% in the first half of the year.

The slowdown was attributed to the phasing out of some government subsidies for electric and plug-in hybrid vehicles, set to end by 2025.
BYD, the world’s largest EV producer, recorded its third consecutive monthly decline in vehicle registrations,

reflecting challenges in the Chinese market.
Meanwhile, other markets offset some of the slowdown:

sales in Europe surged 48% to about 390,000 units on the back of government incentives;

North American sales rose 10% to over 170,000 units; and sales in other markets jumped 55% to more than 140,000 units.
Global sales of electric and plug-in hybrid vehicles reached 1.6 million units in July.

Analysts expect the Chinese market to rebound in August with renewed funding for subsidy programs,

while North American demand may face pressure as tax credits are scaled back by the end of September.

Australia

Slight Slowdown in Australian Wage Growth in Q1 2025
Data from the Australian Bureau of Statistics released on Wednesday morning showed a slight slowdown in wage growth,

with the Wage Price Index rising 0.8% quarter-on-quarter in Q1 2025,

in line with market expectations but below the 0.9% growth recorded in Q4 2024.
Despite the modest slowdown, continued wage growth indicates that Australia’s labor market remains relatively strong,

which could keep pressure on the Reserve Bank of Australia in its upcoming monetary policy decisions.

Historic Surge in U.S. Tariff Revenues Despite Deficit

Historic Surge in U.S. Tariff Revenues Despite Deficit

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