Key facts
- The U.S. government has refunded $81 billion in tariffs this fiscal year.
- This is a significant increase from $5 billion refunded in the same period last year.
- A Supreme Court ruling found a portion of President Donald Trump's tariffs illegal, prompting the refunds.
- Most refunds were processed in May and June.
- The federal deficit reached $1.367 trillion in the first nine months of the fiscal year.
The U.S. government has returned $81 billion in tariffs this fiscal year, a substantial increase from $5 billion in the same period last year, following a Supreme Court ruling that declared a significant portion of President Donald Trump's imposed taxes on imported goods illegal. A Treasury Department official attributed this spike almost entirely to the Supreme Court's February decision, with the majority of refunds occurring in May and June. Trump had championed these tariffs as a strategy to revive American manufacturing, secure better trade deals, and reduce the federal budget deficit. However, the deficit is now expanding again, reaching $1.367 trillion in the first nine months of the fiscal year, a 2% increase. Concurrently, interest payments on the national debt exceeded $1 trillion, up 14%, and military spending climbed 5%. The administration's current temporary 10% global tariff is set to expire on July 24.