Treasury $25.6B customs shortfall fuels June $120B deficit

The U.S. Treasury reported a net customs shortfall of $25.6 billion in June, driven by accelerating refunds of tariffs ruled illegal by the Supreme Court, contributing to a monthly federal budget deficit of $120 billion. The figures, released on Monday, July 13, 2026, mark a sharp reversal from a $27 billion surplus recorded in June 2025.

The Supreme Court struck down a broad set of tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act on February 20, 2026. The ruling compelled the government to return the collected duties to importers. A government-run portal for processing claims opened in late April, with refunds beginning in earnest in May. In June, the Treasury paid out $49.2 billion in refunds while collecting $23.6 billion in gross customs duties. This outflow more than doubled the approximately $22 billion refunded in May.

Combined, the May and June payouts account for roughly $71 billion of an estimated $166 billion in duties that U.S. Customs and Border Protection collected and now owes back. The administration has been expanding the categories of tariffs eligible for refunds, meaning additional businesses are expected to apply...