US tariff refunds exceed collections by $25.6 billion in June
This digest was compiled by AI from multiple sources — links to the originals are below.
The U.S. Treasury refunded $49.18 billion in tariffs in June while collecting $23.63 billion, a net customs revenue of negative $25.56 billion. The refunds stem from a Supreme Court ruling in February that struck down tariffs imposed under the International Emergency Economic Powers Act. The Tax Foundation warned the economic damage from the chaotic tariff regime cannot be refunded.
Key Facts
- In June, the U.S. Treasury refunded $49.18 billion in tariffs and collected $23.63 billion, resulting in net customs revenue of negative $25.56 billion.
- In May, tariff refunds totaled $21.97 billion, exceeding the $21.93 billion collected that month.
- The Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act in February, mandating refunds to up to 330,000 eligible importers.
- The Trump administration collected $166 billion in revenue from IEEPA tariffs before the Supreme Court ruling.
- Erica York, vice president of federal tax policy at the Tax Foundation, said the administration's tariff revenue promises mismatch the data.
Refund Outflow
The U.S. Customs and Border Protection launched an online tariff refund portal in May. That month, the Treasury refunded $21.97 billion, slightly above the $21.93 billion collected. In June, refunds jumped to $49.18 billion against $23.63 billion in collections, a net customs revenue of negative $25.56 billion. The Tax Foundation, citing monthly Treasury statements, reported the figures in a report published this month.
Legal Fallout
The Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act in February. The ruling forced the Trump administration to redistribute $166 billion in collected revenue to up to 330,000 eligible importers. President Donald Trump has since imposed duties under Sections 122, 232, and 301 of the 1974 Trade Act. The Tax Foundation said the remaining tariffs mean economic damage will continue to grow.
Fiscal Impact
Erica York, vice president of federal tax policy at the Tax Foundation, said the drain on tariff revenues represents a failure to reduce the federal deficit or offset tax cuts from the One Big Beautiful Bill act. York told Fortune that the administration relied on shaky legal grounds to impose the tariffs. The Tax Foundation report stated that while importers receive some relief, the economic damage from the chaotic tariff regime cannot be refunded.
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US tariff refunds exceed collections by $25.6 billion in June
