US tariff refunds fall to $10.5B in August as net revenue turns positive

September 12, 2026 at 01:42 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The US government paid out $10.5 billion in tariff refunds in August while collecting $23.3 billion, the first net positive tariff revenue since April. The refund total fell sharply from $33.4 billion in July and $49.1 billion in June. The federal deficit reached $1.966 trillion with one month left in the fiscal year.

Key Facts

The US paid $10.5 billion in tariff refunds in August, down from $33.4 billion in July and $49.1 billion in June.
August tariff revenue was $23.3 billion, producing the first net positive tariff balance since April.
About $115 billion of the $166 billion in court-ordered tariff refunds has been paid since May.
The federal deficit stood at $1.966 trillion at the end of August, up from $1.799 trillion at the end of July.
The Congressional Budget Office projects the final 2026 deficit will reach $2.1 trillion.

Refund Decline

The Treasury Department reported Friday that August tariff refunds totaled $10.5 billion, a sharp drop from $33.4 billion in July and $49.1 billion in June. Tariff revenue in August was $23.3 billion, exceeding refunds for the first time since April. The refund process began after the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act in a February 20 decision. A government-run refund portal opened in late April, and approximately $115 billion has been paid out since May.

Fiscal Deficit

The federal deficit reached $1.966 trillion with one month remaining in the fiscal year ending September 30. That figure is up more than $160 billion from $1.799 trillion at the end of July. The Congressional Budget Office recently projected the final 2026 deficit will hit $2.1 trillion. The CBO raised its deficit projection by about $200 billion earlier this year, citing smaller-than-expected tariff collections.

Tariff Revenue Promises

President Trump proposed this week sending $5,000 to every adult US citizen if Republicans win the midterm election. Vice President JD Vance suggested the payments could come from tariff revenues as the US continues to create wealth. The Tax Foundation noted that Trump's proposal would spend the projected tariff revenue of the entire coming decade at once. The plan, if implemented, could add another $1.3 trillion to the $40 trillion gross national debt.