The U.S. Treasury paid $81 billion in tariff refunds this fiscal year, up from $5 billion a year earlier, after the Supreme Court struck down Trump's tariffs in a 6-3 February ruling. The court found Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad reciprocal tariffs on trading partners. The refund surge, flagged Monday and reported by Agence France-Presse, pushed most payouts through in May and June, while the federal deficit reached $1.367 trillion over nine months as a court refused to let the government slow the process.
Supreme Court Struck Down IEEPA Tariffs in February
The Supreme Court handed down a 6-3 decision in February finding Trump exceeded his authority by using the International Emergency Economic Powers Act, a 1977 law designed for national emergencies, to impose broad reciprocal tariffs on U.S. trading partners. The ruling obliged the government to return money to importers that had already paid. A Treasury Department official told reporters the surge is "almost entirely because of the Supreme Court decision." The refund tally covers the fiscal year that began in October 2025, with figures reported by Agence France-Presse showing most of the money went out the door in May and June.
Trump blasted the refunds as "infuriating" in a May interview, when estimates placed the government's total obligation at roughly $149 billion to $166 billion, plus interest and administrative costs. Measured against those projections, the $81 billion paid out so far suggests the Treasury may be only around halfway through the bill. A federal court rejected an attempt by the government to stall the refund process, keeping the payments on track for the companies that overpaid.
Federal Deficit Reached $1.367 Trillion in Nine Months
The federal deficit reached $1.367 trillion over the first nine months of the fiscal year, up 2% from the prior year. Interest payments on the national debt topped $1 trillion, a 14% jump, while military spending rose 5% amid conflicts in the Middle East. Trump promoted the tariffs as a tool to strengthen domestic manufacturing, gain leverage in trade talks and shrink the deficit. The gap had initially narrowed as tariff revenue rolled in, but the Supreme Court's ruling reversed that flow, turning a revenue stream into a nine-figure liability.
Bitcoin Traded Near $63,000 Amid Tariff Volatility
Trump's threat of a 15% global tariff in February rattled crypto markets, briefly dragging the combined altcoin market capitalization below $1 trillion even as investors welcomed the Supreme Court's ruling against the previous levies. The president vowed at the time to work around the court with new duties, keeping trade policy on traders' radars ever since. Bitcoin is trading near $63,000 at the time of writing. Macro commentators argue that swelling deficits and rising interest costs strengthen the long-term case for scarce assets such as bitcoin, though tariff-driven volatility has also punished risk assets on escalation headlines and lifted them on relief.
FAQ
What did the Supreme Court rule on Trump's tariffs in February?
The Supreme Court handed down a 6-3 decision in February finding Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad reciprocal tariffs on U.S. trading partners. The ruling obliged the government to return money to importers that had already paid.
How much has the U.S. Treasury paid in tariff refunds this fiscal year?
The U.S. Treasury paid $81 billion in tariff refunds this fiscal year, up from $5 billion a year earlier, with most payouts processed in May and June after the Supreme Court struck down the tariffs in February.
What is the federal deficit over the first nine months of the fiscal year?
The federal deficit reached $1.367 trillion over the first nine months of the fiscal year, up 2% from the prior year, while interest payments on the national debt topped $1 trillion, a 14% jump.
