US Treasury records negative tariff revenue as refunds outpace collections

In June 2026 the United States Treasury reported a net customs revenue of negative $25.6 billion, the first time tariff collections have been outweighed by refunds. The shortfall stems from an estimated $166 billion in refunds owed to roughly 330,000 importers after the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in February 2026.

The Treasury collected $23.6 billion in duties that month but returned $49.2 billion to importers, pushing the federal deficit to about $120 billion. While the refunds benefit businesses that cleared goods through customs, the higher prices originally passed on to American households are not reimbursed. A Federal Reserve Bank of New York study estimated that the IEEPA tariffs had added roughly $1,000 per household to consumer prices. The Court did not order direct repayment to consumers; the issue is now being addressed by the US Court of International Trade.