Tariff Refunds Push US June Budget Deficit to $120 Billion
By Reuters | 13 Jul, 2026

The huge deficit is a sharp turnaround from the $27 billion surplus achieved in June 2025 when imports were nearly frozen after Trump's import duties began taking effect.

Growing refunds from President Donald Trump's illegal tariffs pushed the June federal budget deficit up to $120 billion, the U.S. Treasury Department said on Monday, marking a sharp turnaround from the $27 billion surplus in June 2025 that was due partly to his imposition of the import duties.

The Treasury reported gross customs duty collections of $23.6 billion but refunds of $49.2 billion, resulting in a net outflow of $25.6 billion for the month. Total June receipts declined by $31 billion, or 6%, to $496 billion compared to the year-earlier period.

Outlays for June were $616 billion, up $117 billion, or 23%, from the reported June 2025 total. But the Treasury said that June 2025 outlays were reduced by $97 billion due to calendar shifts in benefit payments. On an adjusted basis, the June deficit was up $53 billion, or 79%, from the prior-year adjusted deficit of $67 billion.

The Treasury's gross interest outlays for public debt in June rose $41 billion, or 28%, to $185 billion, but this figure was partially offset by a $10 billion, or 17%, increase in interest received by federal trust funds to $70 billion.

For the fiscal year to date, the deficit rose $29 billion, or 2%, to $1.367 trillion. Receipts for that period were up $143 billion, or 4%, to $4.151 trillion, while outlays rose $172 billion, or 3%, to $5.518 trillion.

(Reporting by David Lawder; Editing by Paul Simao)