The US government has refunded tens of billions of dollars in collected tariffs after the Supreme Court struck down a major portion of President Donald Trump's extra tariffs ordered, marking a significant setback for one of his flagship economic policies. Newly released Treasury budget figures show the refunds surged following the court's ruling, wiping out much of the revenue generated by the contested tariffs.
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According to US budget data released on Monday, the government has paid $81 billion in tariff refunds during the current fiscal year, which began in October 2025, compared with $5 billion during the same period a year earlier.
A treasury department official told AFP reporters that the sharp increase was "almost entirely" due to the Supreme Court's ruling, with most of the repayments made in May and June.
Tariffs on imported goods formed a central pillar of Trump's economic agenda after he returned to office last year. The administration argued the duties would revive domestic manufacturing, secure better trade agreements and reduce the federal budget deficit.
However, the US Supreme Court ruled in February that a substantial portion of the additional tariffs had been imposed unlawfully, requiring the government to refund companies that had paid them.
The administration's trade policy suffered another legal setback in May when, the US Court of International Trade ruled that the administration's blanket 10 per cent tariffs were unlawful.
In a split 2-1 decision, the court held that the government had failed to establish sufficient legal authority under Section 122 of the Trade Act of 1974 to impose the duties. The tariffs had been introduced after the Supreme Court struck down an earlier and broader set of levies.
The latest budget figures indicate that the federal deficit has begun widening again despite tariff collections.
