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2026-07-14 13:24:10
[Tariffs ruled illegal triggers a wave of tax refunds, US budget deficit surges to $120 billion in June] (1) Data from the US Treasury Department shows that the federal budget deficit reached $120 billion in June, reversing the $27 billion surplus projected for June 2025. The main reason is that the Supreme Court ruled in February that the global tariffs imposed by Trump under the International Emergency Economic Powers Act were illegal, leading to a large-scale continuous issuance of tax refunds. (2) Total tariff revenue in June was $23.6 billion, but tax refunds reached $49.2 billion, resulting in a net outflow of $25.6 billion; combined with the $22 billion tax refund in May, the cumulative tax refunds have reached $71 billion, accounting for 42% of the total $166 billion to be refunded. A 10% temporary global tariff will expire on July 24, and the government is considering new tariff measures. (3) Tax refunds dragged down total revenue in June by 6% year-on-year to US$496 billion, while spending increased by 23% (the deficit widened by 79% year-on-year after adjusting for welfare payments); the deficit for the first nine months increased to US$1.367 trillion, while interest payments on public debt increased significantly during the same period, which was partially offset by interest income from trust funds.
