Breaking News: US Tariff Revenue Hits Record $34.2B as Collections Jump 281%

• US customs duties are absolutely crushing it right now. October tariff revenue skyrocketed 281% compared to last year, hitting a record $34.2 billion. The numbers show tariff inflows expanding at a pace we haven’t seen before, marking one of the strongest collection surges in recent history.

• Here’s the thing – this isn’t just a one-month spike. Looking at the three months through October, customs and certain excise taxes pulled in $96.8 billion. That’s already more than what the government collected during the entire Fiscal Year 2024. And remember, FY2025 customs and excise revenues reached $215.2 billion by September 30. The acceleration we’re seeing now is way beyond previous trends.

• The comparison with corporate income taxes really puts this in perspective. “In the first month of Fiscal Year 2026, the government collected $41.6 billion in corporate income taxes, only about 22% higher than October’s tariff revenue alone,” highlighting just how fast tariff collections are catching up. FY2025 corporate income tax receipts totaled roughly $452.1 billion, so that gap is closing faster than most expected.

• What we’re watching here is a major shift in how the government pulls in revenue. Customs duties are climbing so fast they’re starting to rival major tax categories that traditionally dominated federal receipts. This trend will likely influence policy decisions, trade relationships, and overall market conditions going forward.

My Take: The 281% surge signals tariffs becoming a primary revenue driver rather than just a trade tool. When customs collections start approaching corporate tax levels in monthly comparisons, it fundamentally changes fiscal planning and trade policy calculations.

Source: The Kobeissi Letter