US Treasury refunds $22 billion in May tariffs, net outflow

The U.S. Treasury refunded nearly $22 billion in tariff revenue in May, effectively wiping out the government's customs income for the month and pushing net collections into negative territory for the first time in over a decade. The massive repayments are a direct result of a Supreme Court ruling in February that invalidated a key component of former President Donald Trump's trade policy.

According to Treasury Department data released on June 10, customs duty refunds totaled $21.97 billion in May, slightly exceeding gross collections of $21.93 billion. This resulted in a net customs outflow of $42 million, marking the first negative monthly result in Treasury records dating back to 2015. The refunds stem from the Supreme Court's 6-3 decision on February 20, which found that the International Emergency Economic Powers Act did not grant the president authority to impose broad tariffs. The ruling opened the door for importers to seek repayment of duties collected under the now-invalidated measures.

The U.S. Customs and Border Protection agency began processing the refunds in April, with the pace accelerating significantly. By May 20, cash withdrawals tied to tariff refunds had...