U.S. Tariff Revenue Falls After Supreme Court Strikes Down Trump’s Blanket Duties

Adrian Schimpf • March 11th, 2026

Tarrifs never work.

U.S. Tariff Revenue Falls as Supreme Court Strikes Down Trump’s Blanket Duties

 

U.S. tariff revenue declined again in February after a Supreme Court ruling invalidated a large portion of President Donald Trump’s sweeping tariff policy, highlighting the legal and fiscal uncertainty surrounding the administration’s trade strategy.

 

According to the Treasury Department’s latest monthly budget statement, the government collected $26.59 billion in tariffs during February, down from $27.74 billion in January. The decline marks the fourth consecutive monthly drop in tariff revenue after collections peaked at $31.35 billion in October.

 

The drop comes after Trump scaled back some duties late last year amid concerns about rising consumer prices and supply chain disruptions.

Supreme Court Ruling Disrupts Tariff Strategy

 

The latest revenue figures include the period when the U.S. Supreme Court ruled on February 20 that many of Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful.

 

The law, originally passed in 1977, allows presidents to regulate commerce during national emergencies. The court determined that the administration’s use of the statute to impose broad tariffs exceeded its intended authority.

 

The ruling immediately forced the White House to seek alternative legal mechanisms to maintain tariffs on imported goods.

 

In response, the administration announced temporary 10% global tariffs lasting 150 days, implemented under Section 122 of the 1974 Trade Act, which allows short term trade measures to address balance of payments issues.

 

Trump has also suggested the possibility of increasing those tariffs to 15%, though no formal action has yet been taken.

Legal Challenges Could Further Reduce Tariff Revenue

 

Tariff revenue figures could decline further as legal challenges continue to move through the courts.

 

Several companies have filed lawsuits seeking refunds for tariffs collected under the now invalidated IEEPA authority.

 

The U.S. Court of International Trade recently ruled that businesses should be reimbursed for duties collected under the unlawful tariffs, though the federal government has delayed issuing refunds while the issue remains under appeal.

 

Roughly $166 billion in tariff revenue collected since Trump returned to office could potentially be affected depending on the outcome of ongoing litigation.

Tariffs Still Provide Significant Government Revenue

 

Despite the recent decline, tariff revenue remains significantly higher than levels seen before Trump’s return to office.

 

So far this fiscal year, tariffs have generated approximately $144 billion in revenue for the federal government.

 

For comparison, the U.S. collected just $6.81 billion in tariffs in December 2024, the final full month before Trump took office.

 

However, even the current elevated revenue levels represent only a small portion of federal finances.

 

The Treasury report also showed the U.S. fiscal deficit surpassed $1 trillion between October and February, including a $308 billion deficit in February alone.

Trade Deficit Remains Largely Unchanged

 

Another key goal of the administration’s tariff strategy was to reduce the U.S. trade deficit.

 

So far, however, the impact has been limited.

 

According to data from the Bureau of Economic Analysis, the U.S. trade deficit in goods and services totaled $901.5 billion in 2025, compared with $903.5 billion in 2024.

 

The minimal change suggests tariffs have not yet significantly altered the overall balance of trade.

 

Political Debate Over Tariffs Continues

 

The latest data arrives as the administration continues promoting tariffs as a central pillar of its economic policy.

 

President Trump has repeatedly argued that tariffs generate revenue, protect domestic industries, and encourage companies to expand manufacturing inside the United States.

 

However, critics argue that tariffs can raise consumer prices and disrupt global supply chains.

 

Several U.S. states and business groups have also filed lawsuits challenging the administration’s use of emergency trade powers to impose tariffs.

Overall

 

The recent decline in tariff revenue highlights the growing legal and economic uncertainty surrounding the United States’ evolving trade policy.

 

While tariffs continue to generate substantial revenue compared with pre 2025 levels, court rulings and ongoing legal challenges could reshape how the administration implements trade measures moving forward.

 

At the same time, the broader goals of reducing the trade deficit and strengthening domestic manufacturing remain difficult to achieve through tariffs alone.

 

As legal battles continue and new policies are introduced, the long term impact of the administration’s trade strategy on the U.S. economy remains uncertain.

Data & Methodology:

 

Bloomberg

Finance Yahoo

Ben Werschkul

Federal Reserve of Richmond

Aquire for direct sources

Subscribe

Monthly research brief. No commentary. No noise.

We respect your inbox. Unsubscribe anytime.