U.S. Sends Back $33.4 Billion in Tariffs in July. Refunds Now Top $100 Billion.

The U.S. government refunded $33.4 billion in tariffs to businesses in July, pushing total repayments above $100 billion since the Supreme Court struck down President Donald Trump's sweeping emergency tariffs earlier this year.

The July refunds once again exceeded the money the government collected from tariffs during the month. Treasury Department data showed customs duties brought in $24.8 billion, nearly $9 billion less than the amount returned to businesses.

It was the third consecutive month in which refunds overwhelmed tariff collections, underscoring the growing fiscal consequences of the Supreme Court's February decision invalidating Trump's use of emergency powers to impose broad import taxes.

The repayments have accelerated quickly. The government refunded nearly $22 billion in May and another $49.1 billion in June before sending out $33.4 billion in July. Together, the three months account for more than $100 billion returned to importers and other businesses.

The refunds stem from the Supreme Court's Feb. 20 ruling against tariffs Trump imposed under the International Emergency Economic Powers Act, or IEEPA, a 1977 law that gives presidents significant authority during national emergencies. After the ruling, the government was ordered to return duties that had been improperly collected, and a federal tariff refund portal opened in late April.

The reversal is also complicating the federal government's already difficult budget picture. The Treasury Department reported a deficit of just under $1.8 trillion during the first 10 months of fiscal 2026. The Congressional Budget Office now projects the deficit will reach $2.1 trillion by the end of the fiscal year on Sept. 30, approximately $200 billion higher than its February estimate.

The CBO attributed much of that deterioration to tariff collections coming in below previous expectations. "We are about to hit the milestone of $40 trillion in gross national debt," Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement Wednesday. "Although action is long overdue, it is never too late to start correcting course."

Despite the Trump administration's aggressive trade agenda, tariff revenue has provided a relatively modest boost to federal coffers when refunds are taken into account. Since Oct. 1, 2025, the government has collected about $154 billion in net tariff revenue, compared with $135.6 billion during the same period of the previous fiscal year. Around $166 billion in duties and interest could ultimately be eligible to be returned to businesses.

Tariff revenue could remain under pressure in the months ahead for another reason: The administration has begun carving out exemptions as it tries to ease some of the price pressures associated with import duties.

Trump recently announced an exemption for Moroccan fertilizer and reduced duties on some farm equipment. Monthly tariff collections, which peaked at $31.35 billion last October, have since declined, with recent monthly totals generally falling between $20 billion and $25 billion.

At the same time, the administration is moving forward with a new phase of its trade policy. The White House has announced tariffs of 10% to 12.5% on major U.S. trading partners, alongside additional plans targeting imports from Canada and Brazil.