As Bitcoin
$0.000053 strides toward $121,000, U.S. stock markets opened on a bullish note. Notably, U.S. tariffs have been in effect at April rates for all countries for 13 days. President Trump regards tariffs as an effective tool to balance the burgeoning U.S. debt. This situation begs questions about the annual revenue goals and the significance for cryptocurrencies.
U.S. Tariffs
With each incoming U.S. economic report, efforts to comprehend the impact of tariffs intensify. One key method to grasp their influence is by observing tariff revenues. Monthly increases in these revenues highlight tariffs’ growing role in the economy. In July, U.S. customs duty revenues surged by 300%, reaching a record $29.6 billion. If this trend persists, annual customs revenues could approach $350 billion during Trump’s tenure. The benefits of tariffs extend beyond customs revenues; Apple plans a $600 billion U.S. investment for tariff exemption, illustrating the significant indirect impact.
Additionally, the continuously rising customs revenues suggest that tariffs’ effects on inflation won’t be fully understood until these revenues stabilize. When tariff revenues plateau, the clear impact on inflation will emerge, signifying the structural changes tariffs have imposed.
TKL addressed this issue by comparing tariffs from 2018 to the present in their latest assessment. The first trade war initiated under Trump’s leadership never saw monthly revenues exceed $10 billion. Today, revenues have more than tripled those peaks, and they are expected to rise further after a China deal.
In 2025, tariff revenues were recorded as: March $8 billion; April $15 billion; May $22 billion; June $26 billion; July $30 billion. Despite a 90-day pause, the acceleration is noteworthy, with totals surpassing $100 billion. The increased trading volumes, driven by expectations of higher taxes, have also played a role.
Impact on Cryptocurrencies
This month’s customs revenues are anticipated to exceed $40 billion. Increases in tariff rates—India at 25%, Brazil at 40%, and Japan at 15%—are substantial contributors to this revenue growth. Yet, will this close the U.S. debt gap? DOGE reduces its spending, but the debt continues to climb. Despite Trump’s pledge to use customs revenues to curb the deficit, July’s revenues of $30 billion were overshadowed by a budget deficit increase of 19%, reaching a staggering $47 billion.
With government expenditure surpassing $630 billion in a single month in July 2025, tariff revenues fail to counteract the deficit growth rate alone. Amid these fluctuations, gold and Bitcoin gain strength as mandatory interest rate cuts emerge in response to the unrelenting budget deficit.
Future prospects suggest that tariff revenues may rival or surpass corporate tax income. Trump could declare immense U.S. income, backed by data. Yet, the persisting debt issue, rooted in spending problems, may be overlooked. Consequently, interest rates might drop, weakening U.S. interest expenses, and Trump could reappear triumphantly. This probable scenario hints at further crypto gains, reflecting a resilient economic narrative.
