Federal debt hits $37 trillion as Trump’s spending spree outpaces tariff revenue – NaturalNews.com

• The U.S. posted a $291 billion deficit in July, the highest for that month in four years, with spending nearing pandemic-era levels despite no national emergency.
• Tariff revenues of $21 billion in July failed to offset the deficit, and projections show they won’t cover the $4.1 trillion debt added by Trump’s policies.
• Interest payments consumed 27% of July’s tax revenue, and a 1% rate hike could add $30 trillion in interest costs over 30 years.
• Federal spending in July 2025 nearly matched 2021’s peak, with deficits on track to hit $2 trillion this year, rivaling pandemic-era crises.
• The national debt is growing by $1 trillion every five months, risking economic collapse, higher mortgage rates, and a weaker economy.

If you thought reckless federal spending was a problem of the past, think again. Last month, the U.S. government spent a staggering $629 billion while collecting only $338 billion in revenue, creating a $291 billion monthly deficit, marking the highest July shortfall in four years.

Despite Commerce Secretary Howard Lutnick’s bold claim that tariffs would “pay off our deficit,” the numbers tell a different story: the national debt has now surged past $37 trillion, with interest payments consuming 27% of all tax revenue. So much for fiscal responsibility!

This isn’t just a red flag; it’s a five-alarm fire. The Trump administration, once hailed by conservatives as a beacon of fiscal restraint, is now spending at pandemic-level rates without the excuse of a national emergency. Meanwhile, the much-touted DOGE budget cuts have done little to rein in the hemorrhage, leaving taxpayers on the hook for a debt crisis that threatens to cripple future generations.

The tariff myth and the deficit reality

During a July interview on CBS’ Face the Nation, Lutnick boasted that the U.S. was raking in $30 billion a month from tariffs, declaring, “This is going to pay off our deficit.” But Treasury data released days later exposed the absurdity of that claim. While tariff revenue jumped, the $21 billion added to federal coffers barely made a dent in the $291 billion monthly deficit.

The reality is that tariffs are just a drop in the ocean. Even if they generate $1.3 trillion throughout Trump’s term, as the Committee for a Responsible Federal Budget projects, they won’t offset the $4.1 trillion in debt added by the administration’s “Big Beautiful Bill” alone. The tariffs may lead to only modest reductions in federal debt while shrinking the economy and inflating consumer prices.

Interest payments are a major concern

Here’s where the real crisis lies: Of the $338 billion collected in July, $91 billion (or 27%) went solely to interest payments on the national debt. That’s money flushed down the drain on past failures: failed wars, bloated entitlements, and unchecked spending sprees. Worse, the Congressional Budget Office (CBO) warns that if interest rates rise just 1% above projections, it would add $30 trillion in interest costs over 30 years. As interest payments consume more and more tax revenue, it means fewer roads, weaker defense, and gutted social programs, all to service a debt neither party has the courage to tackle.

Spending like it’s 2021 all over again

The Trump administration’s budget math is baffling. Despite claiming a “golden age of prosperity,” federal spending in July 2025 nearly matched July 2021’s Covid-era peak of $302 billion. Even Treasury Secretary Scott Bessent admitted spending levels are “unsustainable,” yet the White House continues shoveling money overseas—including to Ukraine and Israel—while DOGE’s promised cuts amount to very little.

The result? A $1.6 trillion deficit over the first 10 months of FY2025 ($2 trillion for the year) in a threshold not seen since the pandemic.

A reckoning is inevitable

There’s no sugarcoating it: this trajectory will lead to collapse. As Michael Peterson of the Peter G. Peterson Foundation warned, “We are now adding $1 trillion to the national debt every 5 months.” That’s twice as fast as the 25-year average. Meanwhile, Moody’s downgraded U.S. credit ratings, signaling eroding global confidence. The fallout? Higher mortgage rates, stifled wages, and a shrinking economy.

The GOP had a chance to turn the tide. Instead, it’s racing toward the same fiscal cliff as the Democrats, just at a slower speed. If tariffs and token cuts won’t save us, what will? Real spending discipline. Rolling back entitlements. Rejecting corporate welfare. But until voters demand accountability, politicians will keep swiping the national credit card. The bill is coming due… and it’s our children who’ll pay it.

Let’s be clear: this isn’t partisan panic-mongering. It’s math. When 27 cents of every tax dollar funds past debts instead of future prosperity, the system is broken. The Trump administration promised fiscal sanity. Instead, it’s doubling down on the same old lies.

Sources for this article include:

Mises.org

ABCNews.go.com

NYPost.com

FoxBusiness.com