The U.S. Treasury Department on Monday reported a $120 billion federal budget deficit for June after refunding $49.2 billion in tariffs that were later ruled unlawful, marking a sharp reversal from the $27 billion surplus recorded in June 2025.
Tariffs are taxes imposed on imported goods. The June deficit was driven largely by refunds issued after the U.S. Supreme Court struck down President Donald Trump‘s emergency tariffs imposed under the International Emergency Economic Powers Act (IEEPA), according to Reuters.
