Budget Deficit Narrows at Slower Pace After Tariff Rate Drop (1)

The budget deficit narrowed in February at a slower pace than the previous month as US tariff revenue started to slow from the peak rate hit late last year.

For the five months through February, the government had a deficit of $1 trillion, down $148 billion from the same period the year before, after accounting for calendar-year differences, according to data released by the Treasury Department. That marks a 14% contraction in the deficit, down from the 21% pace seen for October through January.

Wednesday’s monthly budget release is the first since the Supreme Court struck down the tariffs President ...