After Trump's "reciprocal tariffs" were overturned, U.S. February tariff revenue dropped by over $1 billion

In February of this year, U.S. tariff revenue was $26.59 billion, a decrease from the previous month, mainly due to the U.S. Supreme Court overturning most of President Trump’s tariff measures earlier.

According to the U.S. Department of the Treasury’s monthly financial report released on Wednesday, U.S. tariff revenue in January was $27.74 billion.

The report also shows that in the first five months of this fiscal year (from October last year to February this year), the U.S. overall budget deficit has exceeded $1 trillion.

Data indicates that since Trump lowered certain key tariffs in November last year, tariff revenue has declined for four consecutive months. Monthly tariff revenue peaked in October last year at $31.35 billion.

On February 20, the U.S. Supreme Court ruled that Trump’s invocation of the International Emergency Economic Powers Act (IEEPA) in 1977 to implement the so-called “reciprocal tariffs” was unconstitutional.

Trump quickly responded by using another legal basis—the Trade Act of 1974, Section 122—to impose a 10% tariff on global goods for 150 days, replacing the overturned tariffs. He also threatened to raise the tariff rate to 15%, though this has not yet been implemented.

Meanwhile, the White House is pushing to implement new permanent tariffs through other legal channels after the current tariffs expire.

The report shows that the U.S. government’s fiscal deficit remains huge. In February alone, the deficit reached $308 billion, far exceeding that month’s tariff revenue.

This contrasts with Trump’s frequent claim that “tariffs can balance the budget.”

Since the start of this fiscal year, total tariff revenue has been approximately $144 billion.

Uncertainty Remains Over Tariff Refunds

The final scale of tariff revenue remains uncertain, as many companies are suing to recover tariffs previously imposed under the IEEPA. The Supreme Court did not specify whether refunds are mandatory in its ruling.

The U.S. International Trade Court recently ruled that the government must refund all illegally collected tariffs. However, the Trump administration has yet to take action. Since Trump returned to the White House, about $166 billion in tariffs collected under the IEEPA remains uncertain.

Latest data also shows that since Trump began withdrawing some tariffs—especially on grocery items—tariff revenue has fallen more than 15% from its peak in October last year, amid concerns that tariffs would drive up prices.

It is worth noting that tariffs currently have limited impact on the U.S. trade deficit. The trade deficit widened significantly in December last year.

Additionally, during Trump’s second term, the total annual trade deficit remained almost unchanged.

According to the U.S. Census Bureau’s Bureau of Economic Analysis, in 2025, the U.S. trade deficit in goods and services is projected to be $901.5 billion, compared to $903.5 billion in 2024 (the last year of Biden’s term), showing little change.

(Source: Cailian Press)