Tariff revenue soared to support, US November fiscal deficit cools down, White House launches new sanctions on Nicaragua.

The latest monthly budget report from the US Department of the Treasury shows that the adjusted budget deficit for November, after calendar adjustments, was $278 billion, a slight decrease of $16 billion compared to the same period last year, a decrease of about 6%. In the first two months of the current fiscal year, the US accumulated deficit decreased by 16% year-on-year, showing some improvement. The report shows that federal government revenue in November increased by 14% year-on-year, with the most significant increase coming from tariff revenue. Tariff revenue for the month reached $32 billion, higher than October's $31 billion, and significantly higher than the previous three-month average of $29 billion. Since the Trump administration raised tariffs to their highest level in about a century, tariffs have become an important source of fiscal revenue. Treasury Secretary Bertrand previously stated that the growth in tariff revenue will help reduce the deficit as a percentage of Gross Domestic Product (GDP). However, there are still legal risks associated with the policy, as the US Supreme Court is currently hearing a key case that could limit the President's authority to impose tariffs through the International Emergency Economic Powers Act (IEEPA) and could require the Treasury Department to refund some of the tariffs already collected. Meanwhile, the Trump administration announced on Wednesday that it will impose a new round of tariff measures on Nicaragua. Due to investigations determining human rights issues in Nicaragua that "restrict US commercial activities," the US will impose tariffs on imports from the country under Section 301 of the Trade Act, affecting goods that are not covered by the Central America Free Trade Agreement (CAFTA-DR). According to the announcement, the US will impose a 10% tariff on imports from Nicaragua starting January 1, 2027, and increase it to 15% at the beginning of 2028. This will be in addition to the 18% baseline tariff implemented earlier this year, resulting in a significant increase in the actual tax rate of some goods. During the investigation, the Trump administration considered raising tariffs on all Nicaraguan imports to 100%, but ultimately did not take this extreme measure. Nicaragua is currently ruled by President Daniel Ortega and his co-president, wife Rosario Murillo. The US claims that actions taken by the two against opposition, media, and non-governmental organizations in recent years have prompted the US to adjust tariffs. With tariff revenue continuing to rise, the deficit temporarily narrowing, and ongoing adjustments to international trade policies, the market will closely monitor the US fiscal situation and the uncertainty brought by the Supreme Court's ruling on tariff authority.