&imwidth=800&imheight=600&format=webp&quality=medium "Trump tariff blowback: US refunds $22 billion in customs duties")
The US Treasury Department said on Wednesday that the government refunded $22 billion in customs duties in May, marking the first major round of repayments after the Supreme Court struck down President Donald Trump's global tariff programme.
Treasury data showed that the amount refunded during the month matched the $22 billion collected in customs duties over the same period, effectively offsetting all tariff revenue received in May.
The repayments follow a Supreme Court ruling in February that dealt a significant blow to Trump's trade agenda. The court found that the president had exceeded his authority by using emergency economic powers to impose broad tariffs on trading partners.
Following the ruling, US Customs and Border Protection began processing refunds linked to duties collected under the International Emergency Economic Powers Act. The repayment programme covers around $166 billion collected through the measure.
Trump administration challenges refund order
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Despite the ongoing refunds, the Trump administration has appealed the trade court's decision requiring the repayments, creating uncertainty around the process.
Last week, Judge Richard Eaton of the US Court of International Trade warned that interference in the case could affect the progress of the refund programme.
The dispute comes as the administration continues to defend its tariff strategy despite the legal setback.
Separately, Treasury figures showed that the US budget deficit narrowed by nine per cent compared with the same period last year, reaching $1.2 trillion during the first eight months of the current fiscal year.
After the Supreme Court ruling, Trump turned to other legal authorities to introduce a new 10 per cent tariff on imports. While officials have described the measure as temporary, the administration is also working on plans for more permanent duties.
The court's decision does not affect Trump's industry-specific tariffs, including those imposed on steel, aluminium and automobiles, which remain in place.
