US Tariff Revenue Turns Negative as Billions in Refunds Flow to Importers but Not the Shoppers Who Paid

Washington has begun repaying importers after courts voided the tariffs, even as fresh duties on dozens of countries replace them (Credit: Hanson Lu/Unsplash)

For the first time in modern US history, the federal government paid out more in tariff refunds than it collected in June, handing billions back to importers while the shoppers who absorbed those costs at the checkout get nothing.

Treasury Department data showed net customs receipts fell to negative $25.6 billion (£19 billion) in June, as the government collected $23.6 billion (£17.7 billion) in duties but sent $49.2 billion (£36.8 billion) back to businesses. It was the sharpest sign yet of a reversal that began in May.