US tariff refunds raise June budget deficit to $120 billion

The U.S. Treasury announced that refunds of tariffs imposed under President Donald Trump have pushed the federal budget deficit for June to $120 billion, a sharp reversal from the $27 billion surplus recorded in June 2025. The Supreme Court’s February ruling declared a large portion of the Trump‑era tariffs illegal, prompting the government to return $49.2 billion in June alone and about $71 billion for May‑June combined. Overall, $81 billion in tariff refunds have been paid out in the current fiscal year, up from $5 billion a year earlier.

The surge in refunds contributed to a fiscal year‑to‑date deficit of $1.367 trillion, 2 percent higher than the same period last year. Interest payments on the national debt exceeded $1 trillion, a 14 percent rise, while military spending grew 5 percent amid ongoing conflict in the Middle East. A temporary 10 percent global tariff set to expire on 24 July remains in place, and the administration is preparing new duties aimed at curbing forced‑labor practices and addressing excess industrial capacity.