The US recorded a USD 120 billion budget deficit in june, primarily driven by a surge in import tax refunds. Total budget revenue last month reached USD 496 billion, a 6% decrease from the previous year. Concurrently, expenditures rose by 23% to USD 616 billion.

The US Treasury Department confirmed on 13/7 that a key factor was customs duty collection in june, which totaled USD 23,6 billion. However, import tax refunds significantly exceeded this, reaching USD 49,2 billion.

Container terminal 1 at the port of Los Angeles in Wilmington, California, US in 10/2024. Photo: Reuters

These refunds began in may, following a US Supreme Court ruling in february that invalidated import tariffs imposed by then-President Donald Trump under the International Emergency Economic Powers Act (IEEPA). The june refund amount, USD 49,2 billion, was double that of may, which stood at USD 22 billion.

For context, in 6/2025, when Trump's import tariffs fully took effect, the US Treasury Department recorded net customs duty collection of USD 26,6 billion. That fiscal year marked the first time total import tax revenue surpassed USD 100 billion.

That month, the budget saw a surplus of USD 27 billion. Then-Treasury Secretary Scott Bessent stated that these figures demonstrated the US was "reaping the rewards" of Trump's trade policies.

Currently, the nation's tax policy remains in flux. Temporary 10% tariffs are set to expire on 24/7. The US government is also preparing to impose new tariffs on dozens of countries that Washington believes are not adequately enforcing anti-forced labor regulations and are maintaining industrial overcapacity.

In total for may and june, the refunds amounted to approximately USD 71 billion. This figure represents 42% of the funds collected by US Customs and Border Protection (CBP) under IEEPA. For the first 9 months of fiscal year 2026 (beginning in 10/2025), the federal budget deficit increased by USD 29 billion, or 2%, reaching USD 1.367 billion.

Ha Thu (Reuters)