According to budget data released on Monday, the US government has returned tens of billions of dollars in tariffs collected prior to the Supreme Court ruling them illegal.
Since the start of the current fiscal year in October 2025, the US has refunded $81 billion (£61 billion) in tariffs. In comparison, during the same period last year, refunds totaled $5 billion. A Treasury Department representative indicated that the significant increase in payouts is largely due to the Supreme Court’s decision, with most refunds processed in May and June.
Tariffs—duties on imported goods—were a central element of Donald Trump‘s economic policy since he took office last year. In February, the Supreme Court ruled that a substantial portion of the additional tariffs imposed by Trump were illegal, necessitating the return of funds to importing companies that had paid them.
Donald Trump advocated for tariffs as a broad strategy to bolster the economy, revive US manufacturing, negotiate better trade deals, and reduce the federal budget deficit. However, the deficit, which saw a slight decrease last year due to tariff revenues, is now on the rise again.
For the first nine months of the fiscal year, the deficit reached $1.367 trillion, marking a 2% increase. The US spent over $1 trillion solely on interest payments for the national debt, a 14% increase, while military spending rose by 5% due to the ongoing conflict in the Middle East.
New Tariffs and Trade Threats
The current temporary global 10% tariff imposed by the US administration is set to expire on July 24, but the White House is already preparing new trade restrictions. The administration cites insufficient compliance with laws against forced labor and excess industrial capacity in certain countries as justification.
The latest proposal could impact major trading partners, including Great Britain, Japan, India, Taiwan, and China. This could enable Trump to circumvent previous court limitations on his protectionist policies. The new tariff rates are expected to range from 10% to 12.5%. Additionally, the US has threatened to impose new 25% tariffs on Brazil.
Last month, Trump also threatened to impose 100% tariffs on European countries, including Great Britain, that implement a digital services tax on major American technology companies.
Great Britain has a 2% digital services tax that applies to large social media platforms, search engines, and online marketplaces. According to the Treasury Department, this tax, which affects companies such as Apple, Google, and Amazon, generated over £800 million in the 2024–2025 fiscal year. France, Spain, and Italy also impose a 3% digital services tax on large companies operating in their markets.
The US president stated that any country imposing a digital services tax on American companies will immediately face 100% tariffs on all exports to the US.
Source: The Guardian
