The pace of narrowing the US budget deficit is slowing, with a decrease in tariff revenue.

The United States' budget deficit narrowed in February, but the pace slowed compared to the previous month, as tariff revenue fell after reaching a peak at the end of last year. Data released by the US Treasury Department shows that, after adjusting for calendar year differences, the federal government recorded a deficit of $1 trillion for the five months ending in February, a decrease of $148 billion from the same period last year. The deficit narrowed by 14%, less than the 21% decrease from October to January. The monthly budget report released on Wednesday is the first report since the Supreme Court overturned President Donald Trump's use of emergency powers to impose tariffs. The ruling determined that Trump's invocation of the International Emergency Economic Powers Act to implement a "reciprocal" tariff regime globally was an abuse of power. This ruling raises doubts about the government's ability to maintain last year's high import tariff revenue. Last month, tariff revenue was $26.6 billion. Before the ruling, tariff revenue was already showing signs of slowing down - declining monthly since reaching a peak of $31.4 billion in October.