US returns $81 billion after Supreme Court rules Trump-era tariffs illegal

WASHINGTON:-According to budget data released on Monday, the U.S. government has refunded billions of dollars in customs duties that were collected before the Supreme Court ruled them unlawful.

Tariffs—taxes imposed on imported goods—have been a key component of President Donald Trump’s economic agenda since he assumed office again last year.

However, in February, the Supreme Court struck down a significant portion of the additional tariffs imposed by Trump, creating a situation where the government had to issue refunds to the companies that had paid them.

According to budget data, the US has so far issued $81 billion in tariff refunds during the current fiscal year—which began in October 2025—whereas the figure stood at just $5 billion during the same period last year.

According to an official from the Treasury Department, a Supreme Court ruling was the primary reason for the sharp rise in these refunds, with the majority of the payouts occurring in May and June.

Trump had presented these tariffs as a “catch-all fix” for the economy—expected to bring factories back to the U.S., secure better trade deals, and reduce the federal budget deficit.

However, the budget deficit—which had narrowed slightly last year due to revenue from customs duties—has now begun to widen again.

In the first nine months of the current fiscal year, the deficit rose by 2 percent to reach $1.367 trillion.

The US has spent over $1 trillion on interest payments for its debt alone (an increase of 14 percent), while military spending has also risen by 5 percent due to the war in the Middle East.

The current temporary 10 percent global tariff imposed by the administration is set to expire on July 24; however, the White House is preparing to impose new tariffs due to issues regarding the lax enforcement of anti-forced labor laws and “excess industrial capacity.”