US refunds $81bn in Trump tariffs after supreme court ruled them illegal | Trump tariffs
US politics | The Guardian — 2026-07-13 19:35:00 — www.theguardian.com
President Trump’s Tariff Strategy Backfires as Supreme Court Forces Billions in Refunds
President Donald Trump has repeatedly pitched tariffs as a universal solution for America’s economic challenges, claiming they would revive domestic manufacturing, secure better trade deals, and shrink the federal deficit. However, new budget data reveals a starkly different outcome after a Supreme Court decision forced the government to refund tens of billions of dollars in tariffs deemed illegal.
## Supreme Court Ruling Undercuts Tariff Policy
Tariffs have been central to Trump’s economic agenda since he returned to office last year. In February, the Supreme Court struck down a significant portion of the additional tariffs Trump had ordered, compelling the government to return the collected funds to affected companies. According to Treasury figures, the U.S. has paid out $81 billion in tariff refunds so far this fiscal year—an enormous increase from just $5 billion during the same period last year. Most of these refunds occurred in May and June, directly tied to the court’s decision.
## Contradiction Between Claims and Outcomes
Trump had promoted the tariffs as a “catch-all fix for the economy,” promising they would bring factories back to America, improve trade deals, and close the federal budget deficit. Yet, the latest data shows the opposite: the deficit, which had temporarily narrowed due to tariff revenue, is now widening again. In the first nine months of the fiscal year, the deficit reached $1.367 trillion, a 2% increase. Meanwhile, the government’s interest payments on debt soared to over $1 trillion, up 14%, and military spending rose 5% due to the ongoing war in the Middle East.
## Ongoing Uncertainty and New Tariff Plans
The administration’s current temporary 10% global tariff is set to expire on July 24. Despite the recent setback, the White House is preparing new duties, citing concerns over lax enforcement of anti-forced labor laws and excessive industrial capacity abroad.
## Conclusion
President Trump’s assertion that tariffs would be a comprehensive solution to America’s economic woes has not held up under scrutiny. The Supreme Court’s intervention and the resulting $81 billion in refunds highlight the legal and fiscal vulnerabilities of his approach. As the deficit grows and economic pressures mount, the effectiveness of Trump’s tariff strategy remains in serious question, with significant consequences for businesses and taxpayers alike.
Source: https://www.theguardian.com/us-news/2026/jul/14/trump-tariffs-us-refunds