Tariff Refunds Matched Tariff Collections in May

Treasury data released June 10 show that tariff refunds in May matched the month’s customs-duty collections, leaving net tariff revenue effectively zero. The figures are the clearest sign yet that the repayment program tied to the Supreme Court’s tariff ruling has become large enough to erase an entire month of customs receipts.

The Treasury snapshot said the government collected about $22 billion in customs duties in May and paid out about $22 billion in refunds. That left net tariff revenue at roughly zero for the month. Treasury also said May customs-duty collections were about the same as they were in May 2025.

The monthly figures matter because they put a hard number on a refund process that has been expanding for weeks. Earlier reports showed U.S. Customs and Border Protection already had directed tens of billions of dollars in repayments and was working through a large backlog of claims tied to the court ruling that struck down the tariffs imposed during President Trump’s term.

How the refund program reached this scale

The refund process follows the Supreme Court decision that overturned the tariffs and left the repayment mechanics to lower courts and customs officials. That has turned the issue into both a legal fight and a major administrative task for CBP, the Treasury Department and the Justice Department.

On May 27, The Guardian reported that CBP had already refunded about $20 billion and expected about $65 billion more. Three days later, AP reported that CBP had issued about $20.6 billion in refunds and that the Justice Department planned to appeal a judge’s broader order allowing all importers, not just the original lawsuit plaintiffs, to seek repayment.

By June 8, AP reported that CBP had accepted about $90 billion in claims and directed about $23 billion in refunds. That report said the refund process remained contested and that the government’s appeal could slow payments.

The June 10 Treasury figures do not contradict those earlier reports. Instead, they show a later monthly accounting point: whatever the cumulative totals looked like in the claims system, the refunds paid in May were large enough to fully offset that month’s customs-duty collections.

What the Treasury snapshot shows

Treasury said fiscal-year-to-date net tariff revenue was $189 billion, up from $81 billion at the same point a year earlier. That means the May washout did not erase the broader year-to-date increase, but it did show how quickly refunds are changing the monthly revenue picture.

The numbers also highlight the difference between gross collections and net receipts. A month with strong customs-duty inflows can still end up with no net gain if refunds are processed at the same pace. In May, that is essentially what happened.

For importers and customs brokers, the size of the refund program matters as much as the fiscal optics. Companies that paid the tariffs are waiting for repayments, while others are watching to see whether the government’s appeal narrows who is eligible and how quickly claims move.

The legal fight over eligibility

The core dispute is who gets paid back. The Justice Department has sought to appeal the broader order that would allow all importers who paid the struck-down tariffs to seek refunds, rather than limiting repayment to the original plaintiffs.

That question is now central to the pace of the program. If eligibility narrows, some claims could be slowed or denied. If the broader repayment order survives, CBP would face a larger and more complicated processing burden.

The Supreme Court ruling is already shaping federal operations well beyond the courtroom. CBP has to verify claims, Treasury has to account for the outflow, and affected businesses are trying to determine when and whether their money will return.

What to watch next

The next Treasury monthly statement will show whether May was a one-month anomaly or the start of a pattern in which refunds continue to neutralize fresh customs collections.

The other major watch point is the Justice Department appeal. A ruling that narrows eligibility could materially change the refund pool. A ruling that leaves the broader order intact would likely keep the repayment pipeline large and politically sensitive.

For now, Treasury’s May snapshot is the clearest evidence that tariff refunds have reached a scale capable of wiping out an entire month of customs-duty revenue, even as year-to-date receipts remain above last year’s pace.