The US Treasury refunded nearly $22 billion in tariff revenue collected from importers in May, marking one of the largest single-month fiscal reversals in recent trade policy history. The refunds stem from a Supreme Court ruling that struck down broad tariffs imposed under the International Emergency Economic Powers Act, effectively telling importers: you shouldn’t have been charged in the first place.
US Customs and Border Protection reported that cash withdrawals for tariff refunds hit approximately $17 billion by May 20 alone, compared to just $3 billion for the entirety of April.
What happened and why it matters
On February 20, the US Supreme Court voted 6-3 to invalidate tariffs that had been imposed using IEEPA as their legal basis. The ruling determined that the statute, originally designed to grant the president emergency economic powers, had been stretched beyond its intended scope when used to levy broad import duties.
The decision opened the door for affected importers to reclaim duties collected since February 2025.
