US refunds $81bn in Trump tariffs after supreme court ruled them illegal

Key Points:

• The US government has refunded $81 billion in tariffs this fiscal year following a Supreme Court ruling that deemed many of Donald Trump’s tariffs illegal, a significant increase from $5 billion refunded the previous year.
• Trump’s tariffs, initially aimed at boosting US manufacturing, improving trade deals, and reducing the federal deficit, have contributed to a growing deficit, which reached $1.367 trillion in the first nine months of the fiscal year.
• The current 10% global tariff set to expire on July 24 may be replaced by new duties targeting countries like the UK, Japan, India, Taiwan, China, and Brazil, with rates expected between 10% and 12.5%, aimed at enforcing anti-forced labor laws and addressing industrial overcapacity.
• Trump has threatened a 100% tariff on European countries, including the UK, in response to their digital services taxes on major US tech companies, stating such tariffs would override any existing or future trade agreements.
• Several European countries, including the UK, France, Spain, and Italy, have implemented or proposed digital services taxes on large tech firms, generating significant revenue but provoking strong US retaliation threats.