TLDR:
- US customs collections hit $ 23 billion in May and postpone every month over $ 30B
- Lutnick claims that customs income supports interest rate cuts by facilitating the federal deficit
- Powell warns tariffs can drive inflation, urges caution to lowering prices
- Online critics claim that customs raise consumer costs and do not lower deficits
The US government now collects over $ 30 billion each month from customs, according to Trade Secretary Howard Lutnick.
This figure comes when the debate intensifies over the interest rate cuts, with the Federal Reserve Chairman Jerome Powell signaling overview. While inflation pressure seems to be facilitated, political experts were shared on how customs and Grading decisions will affect The broader economy.
New customs data also shows a record $ 23 billion, collected in May alone. This development has increased the complexity of an already heated conversation on inflation, loan costs and economic growth.
Customs collections reach new heights
Howard Lutnick claimed that current customs revenue tops $ 30 billion each month, a sharp increase from previous figures. He suggested that this increase helped reduce the US deficit by getting direct cash into the Treasury.
In his opinion, strong revenues in combination with low inflation support an urgent case for interest rate cuts. However, the latest US customs and border protection data revealed a total of $ 23 billion collected in May, marking a new monthly record.
I just listened to Jerome Powell again testify. He goes out of his way of urging customs price increases that potentially increase inflation, as if he has seen some, but in fact he testifies that in the last 2.5 months such inflation price increases have not been realized. ZERO.…
– Howard Lutnick (@howardutnick) June 25, 2025
Lutnick claimed that this windfall should take part in monetary policy decisions. He added that higher customs income can reduce the need for borrowing and facilitate the press on federal interest payments.
Jerome Powell has maintained a careful the position of interestDespite calls for immediate cuts. While he witnessed recently, he acknowledged that inflation had slowed down but warned of potential risks ahead. Among them, he flagged customs as a possible source of future price increases.
Powell emphasized that inflation expectations, not just previous trends, form frequency policy. Although no new increase in consumer prices has been linked to customs, he advised to keep awake. His position suggests that Fed prefers to observe long -term effects before acting.
Online debate about customs impact
Lutnick’s comments triggered sharp answers to social media. A user published under the handle’s care guy disputed the claim that tariffs reduce the deficit.
He pointed out that customs revenue is collected from US importers, not foreign producers. These costs, he claimed, are transferred to American consumers.
This post shows a couple of things. One this is the stupidest cabinet ever mounted. Two rich do not correspond smartly.
Howard, almost everything in your post is either incorrectly presented, misunderstood or dangerously ignorant.
First, Jerome Powell didn’t say …
– Caring Guy💙🇺🇸🌈✌🏻 (@caringguy1957) June 25, 2025
Critics emphasized that the use of tariffs such as growth tools could strike back by increasing domestic prices and lowering demand. They also warned that income from customs is not a permanent solution for fiscal deficiencies.
While duties can increase the tax fund in the short term, the Fed’s decision is to lead to broader economic trends. Experts note that interest rate policy must weigh inflation forecasts, global financial stability and employment data.
Reducing prices too soon may risk reigning inflation or undermining investors’ trust.
The conversation continues as Powell’s next political meeting is approaching. If rising customs revenue will affect Fed’s decision remains to be seen.
