The magnitude of tariff refunds the Trump administration must dole out is now outpacing how much money it’s bringing in through the import taxes, and it’s dealing a new blow of damage to the U.S. economy, one think tank warned.
In May, when the U.S. Customs and Border Protection (CBP) rolled out its online tariff refund portal, the U.S. Treasury refunded $21.97 billion, exceeding the $21.93 billion it collected that month—and a complete reversal of the month before, when the Treasury distributed only about $2 billion in tariff refunds, according to a report published this month by the Tax Foundation, a tax policy nonprofit, citing monthly Treasury statements. In June, the balance sheet became even more lopsided, with $49.18 billion refunded as compared to the $23.63 billion collected, resulting in a net customs revenue of negative $25.56 billion.
Tariff revenue makes up just a small fraction of the government’s total revenue, but the Tax Foundation warned the chaos surrounding the tariffs and their legal fallout has had an outsized economic impact, exemplified by the government hemorrhaging billions of dollars monthly through refunds.
“While importers will experience some relief by receiving refunds, the economic damage from the chaotic tariff regime cannot be refunded—and the remaining tariffs means economic damage will continue to grow,” the report said.
