The U.S. Treasury refunded nearly $22 billion in tariff revenue collected from importers in May, the first swath of such repayments since the Supreme Court struck down a major component of President Donald Trump's trade policy.
The amount was roughly equal to tariffs taken in during the month, according to a Treasury Department
The administration began processing refunds in April after the Supreme Court ruled that President Donald Trump didn't have the authority to impose tariffs using the International Emergency Economic Powers Act. But the eventual extent of the reimbursements remains uncertain after the administration
Net revenue from customs duties were slightly negative — by about $42 million — the first time that has happened in Treasury data compiled by Bloomberg going back to 2015.
When Treasury Secretary Scott Bessent was asked about the tariff refund case during a congressional hearing last week, he said the money would be returned to the companies that imported the tariffed goods.
Overall, the deficit narrowed to $1.25 trillion for the first eight months of the fiscal year, representing a 9% decline from the same period last year.
Revenue from tariffs, which peaked in October, made a significant contribution to the Treasury's coffers during the 2025 fiscal year, resulting in the
The interest the U.S. paid on its debt was $133 billion in May, an increase of 44% over the same month last year. Individual tax withholdings plus Social Security and Medicare taxes collected increased to $286 billion in May from $247 billion last year, while corporate tax receipts were down by 67%.
For the full fiscal year, the U.S. deficit is expected to widen, based on Congressional Budget Office projections. The nonpartisan outfit said in its February outlook that the deficit would
