Tariff Refunds Push US June Budget Deficit to $120 Billion
Growing refunds tied to President Donald Trump's tariffs, which were ruled illegal, pushed the June federal budget deficit to $120 billion, a sharp reversal from a $27 billion surplus in June 2025, the US Treasury Department said, The Treasury reported gross customs duty collections of $23.6 billion but refunds of $49.2 billion, resulting in a net outflow of $25.6 billion for the month, the report said. Refunds began flowing in May after the US Supreme Court struck down Trump's broadest tariffs as illegal under the International Emergency Economic Powers Act in February. May and June refunds together total about $71 billion, or 42%, of the $166 billion in tariffs collected under that ruling that were subject to refunds. For the first nine months of fiscal 2026, the deficit rose 2% to $1.367 trillion, with receipts up 4% to $4.151 trillion and outlays up 3% to $5.518 trillion,
Growing refunds tied to President Donald Trump's tariffs, which were ruled illegal, pushed the June federal budget deficit to $120 billion, a sharp reversal from a $27 billion surplus in June 2025, the US Treasury Department said, The Treasury reported gross customs duty collections of $23.6 billion but refunds of $49.2 billion, resulting in a net outflow of $25.6 billion for the month, the report said.
Refunds began flowing in May after the US Supreme Court struck down Trump's broadest tariffs as illegal under the International Emergency Economic Powers Act in February.
May and June refunds together total about $71 billion, or 42%, of the $166 billion in tariffs collected under that ruling that were subject to refunds.
For the first nine months of fiscal 2026, the deficit rose 2% to $1.367 trillion, with receipts up 4% to $4.151 trillion and outlays up 3% to $5.518 trillion,