![Iklan](https://elskynews.com/wp-content/uploads/2026/05/Altimet-RidhuanTee-LaguRaya-LaguRayaModen-HiburanMalaysia-SelebritiMalaysia-TrendingMalaysia-ViralMalaysia-MusicMalaysia-EntertainmentNews-1.png")
KUALA LUMPUR,June,2026 – The United States Treasury refunded nearly US$22 billion in tariff revenue collected from importers in May, effectively wiping out the government’s customs duties revenue for the month. The refunds mark the first major wave of repayments after the US Supreme Court struck down a key part of President Donald Trump’s trade policy.
According to a Treasury Department statement cited in reports, the amount refunded was roughly equal to the tariff revenue collected during the same month. Reuters reported that customs duty refunds in May reached US$21.97 billion, slightly exceeding gross collections of US$21.93 billion, resulting in a small net customs outflow of about US$42 million.
The development is significant because tariffs had previously been promoted as a major source of government revenue. However, the latest figures show that the refund process has temporarily cancelled out those collections, raising fresh questions about the fiscal impact of tariffs that were later ruled unlawful.
The refunds follow a Supreme Court ruling that found tariffs imposed under emergency powers were illegal. The case involved duties linked to Trump’s use of the International Emergency Economic Powers Act, or IEEPA, as part of hi
The ruling triggered a large-scale refund process involving importers that had paid tariffs under the affected policy. AP reported that the dispute now centres on whether all importers who paid the invalidated tariffs should receive refunds, or only those that filed lawsuits challenging the duties.
A US trade judge has also urged the Trump administration to accelerate the repayment process. Reuters reported that Judge Richard Eaton criticised the slow pace of refunds and raised concerns about differences in how large and small importers were able to navigate the system.
According to AP, US Customs and Border Protection has already accepted around US$90 billion in refund claims and directed about US$23 billion in refunds. However, the process remains under legal dispute as the Justice Department appeals parts of the refund order.
The issue has become especially important for businesses that paid duties on imported goods. Larger companies with established customs brokers have generally found it easier to file refund claims, while smaller importers may face more difficulty understanding eligibility, documentation and filing requirements.
The tariff refunds also affected the federal government’s May budget figures. Reuters reported that the US budget deficit for May fell by US$23 billion, or 7 percent, to US$293 billion on an unadjusted basis. However, when adjusted for calendar shifts, the deficit actually increased by US$71 billion, or 32 percent, compared with May 2025.
Treasury receipts fell partly because of the tariff refunds. Overall May receipts declined 10 percent to US$336 billion, while outlays fell 9 percent to US$628 billion. Reuters also noted that Treasury debt interest rose sharply, reaching a record US$133 billion for the month.
Despite the May refund impact, tariff revenue for the fiscal year remains higher than the previous year. The Wall Street Journal reported that net tariff revenue since the start of the fiscal year on October 1 reached US$189 billion, compared with US$81 billion during the same period a year earlier.
The latest figures highlight the complex budget impact of tariff policy. While tariffs can generate revenue when collected, court rulings and refund obligations can reverse some of those gains if the duties are later found to be unlawful. This makes tariff revenue less predictable than traditional tax collections.
The refund process also adds uncertainty for importers, customs authorities and federal budget planning. Businesses that paid the affected tariffs may now be waiting for repayments, while government agencies must manage claims, appeals and legal deadlines.
The Trump administration is also reportedly considering new tariffs under different legal authorities after the Supreme Court ruling. Reuters reported that customs revenue has fallen into the low US$20 billion range since peak collections in October 2025, while officials continue reviewing future trade-policy options.
For US trade policy, the case represents a major setback to the use of emergency powers as a basis for broad tariff action. It also shows how legal challenges can reshape the financial outcome of trade measures long after duties have been collected from companies.
For importers, the ruling may provide financial relief, especially for businesses that paid large tariff bills under the invalidated measures. However, uncertainty remains over who qualifies for refunds, how quickly claims will be processed and whether ongoing appeals could delay wider repayments.
the nearly US$22 billion refund in May shows that the financial consequences of the Supreme Court’s tariff ruling are already being felt in federal revenue data. While tariffs remain a major political and economic tool in Washington, the latest refund wave demonstrates that their fiscal value can be sharply reduced when legal challenges succeed.
