US government refunds $81B in tariffs after Supreme Court ruling
What's the story
The United States government has refunded $81 billion in tariffs collected under President Donald Trump's trade strategy, according to budget figures released on Monday. The refunds were triggered by a Supreme Court ruling that deemed a large section of the taxes illegal. The decision has resulted in a dramatic increase in tariff refunds this fiscal year, which began in October 2025.
Financial impact
Federal deficit rises to $1.367 trillion
The $81 billion in refunds this fiscal year is a stark contrast to the $5 billion refunded during the same period last year.
Most of these refunds were issued in May and June, following the Supreme Court's decision.
The massive payouts have pushed up the federal deficit to $1.367 trillion for the first nine months of this fiscal year, a 2% increase from previous figures.
Budget strain
Increase in debt interest payments and military spending
In addition to the tariff refunds, the United States has also seen a 14% increase in debt interest payments, which have exceeded $1 trillion.
Military spending has also gone up by 5%, owing to ongoing conflicts in the Middle East.
The current temporary 10% global tariff is set to expire on July 24, with new tariffs likely to be imposed soon.
Trade tensions
White House considers new tariffs
The White House is reportedly considering new tariffs over what it considers weak enforcement of anti-forced labor laws and excess industrial capacity.
These developments come as part of President Trump's ongoing trade strategy, which he had proposed as a solution to bring factories back to America, negotiate better trade deals, and reduce the federal budget deficit.