US tariff collections fell by more than $1 billion in February after the Supreme Court overturned Trump’s broad-based tariffs

US Tariff Revenue Drops Following Supreme Court Ruling

In February, the United States collected $26.59 billion in tariff revenue, continuing a downward trend after the Supreme Court invalidated most of the tariffs introduced by former President Trump.

According to the Treasury Department’s latest monthly report, February’s figure followed January’s $27.74 billion in tariff income.

The same report revealed that the federal deficit exceeded $1 trillion for the period from October through February, the first five months of the fiscal year.

Tariff revenues have now declined for four consecutive months, a trend that began after Trump eased several key tariffs last November. The highest monthly tariff revenue was recorded in October at $31.35 billion.

This data release coincided with the Supreme Court’s February 20 decision to overturn tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977.

In response, Trump quickly announced new global tariffs of 10% for 150 days, this time using Section 122 of the 1974 Trade Act as the legal basis.

He has also promised to increase these duties to 15%, though this has not yet been implemented. The administration is working on establishing permanent tariffs under alternative authorities once the Section 122 measures expire.

President Trump addresses the media on the White House South Lawn before departing for Kentucky and Ohio. (Tom Williams via Getty Images)

Despite frequent claims that tariffs are helping to balance the budget, the government’s deficit remains substantial—$308 billion in February alone, far surpassing tariff revenue.

Since the start of the fiscal year, total tariff collections have reached approximately $144 billion.

Uncertainty Over Tariff Refunds

The final amount of tariff revenue is still unclear due to ongoing legal challenges from businesses seeking refunds on IEEPA tariffs. The Supreme Court did not clarify whether refunds must be issued.

Recently, the US Court of International Trade ruled that the government must return all unlawfully collected tariffs. The administration has postponed action, leaving about $166 billion in IEEPA tariff revenue collected since Trump’s return to office unresolved.

This new data comes as Trump shifts his focus to economic issues, visiting Ohio and Kentucky to highlight his trade policies and their impact. On Truth Social, he announced plans to visit a growing business, attributing its expansion to his “America First” trade approach, particularly tariffs.

However, both Ohio and Kentucky have experienced negative consequences from tariffs. Kentucky has joined a multistate lawsuit challenging Trump’s new Section 122 tariffs.

Additional Resources

President Trump greets Supreme Court justices in February before delivering his State of the Union address. (Win McNamee via Getty Images)

Tariff Revenues Continue to Fall

February’s tariff revenue represents a drop of more than 15% from the October peak, following Trump’s decision to reduce certain tariffs—especially those affecting grocery items—as concerns about rising prices grew.

So far, tariffs have had little effect on reducing the US trade deficit. In fact, the deficit rose in December, and annual figures showed minimal change.

According to the Commerce Department’s Bureau of Economic Analysis, the total trade deficit for goods and services in 2025 was $901.5 billion, compared to $903.5 billion in 2024, the final year of President Biden’s term.

Data for January is expected to be released on March 12.

The latest figures also highlight the significant changes since Trump took office 14 months ago. In December 2024, the last full month of Biden’s presidency, tariff revenue was $6.81 billion—less than a quarter of February’s total.

Ben Werschkul reports from Washington for Yahoo Finance.