Trump Collected Tariffs

Trump Collected $133 Billion From Tariffs. Who Gets That Money Now?

In 2025, the United States found itself in the midst of one of the most consequential economic debates of the decade. Former President Donald Trump’s sweeping tariff regime—designed to reshape global trade & generate domestic revenue-- ended up in the crosshairs of the U.S. Supreme Court, leading to a legal ruling that has thrown about $133 billion in tariff revenue into uncertainty. But what exactly is this money? Who originally paid it? And most importantly, who gets it now? This blog explores those questions in detail.

The Great Tariff Surge of 2025

When President Trump returned to the White House in 2025, he made tariffs a cornerstone of his economic strategy. Building on earlier precedents from his first term, the administration expanded duties on a broad array of imported goods- ranging from consumer products to industrial materials.

Tariffs are taxes imposed on goods entering a country. They raise the cost of imports, with the stated goals of protecting domestic industry, correcting perceived trade imbalances, & raising government revenue. In 2025 alone, customs revenue spiked dramatically. In the first half of the year, the U.S. collected more in tariff revenue than it had in all of 2024-an impressive and politically powerful spectacle.

That revenue buildup quickly approached $133 billion from tariffs collected under an emergency authority known as the International Emergency Economic Powers Act (IEEPA), which empowered the president, in Trump’s interpretation, to levy sweeping import taxes.

This amount was not a small stream of incidental income—it became one of the most significant revenue sources outside traditional taxes in decades.

Who Paid the Tariffs in the First Place?

Understanding who paid this $133 billion is essential before determining who might get it back or keep it now. Tariffs are technically levied on importers, meaning the businesses that bring foreign goods into the United States. Legally, these companies send tariff payments directly to U.S. Customs & Border Protection.

But in real economic terms, tariffs are rarely borne by foreign exporters. Most academic and market research suggests that American businesses & consumers shoulder the vast majority of the cost. In many cases, importers pass tariff costs onto wholesalers, retailers, & eventually American customers in the form of higher prices. One international study even estimated that nearly 96% of the economic burden of tariffs ends up on domestic buyers, not foreign sellers.

So while importers technically wired checks to the U.S. Treasury, the real economic payers were often U.S. businesses and everyday consumers—either through direct cost increases, squeezed profit margins, or higher prices at the checkout.

The Supreme Court’s Ruling: A $133 Billion Question

In early 2026, the Supreme Court delivered a striking decision: the emergency tariff regime imposed under IEEPA was illegal. A bipartisan majority held that this statute did not authorize the president to impose broad import taxes without specific congressional approval. This ruling invalidated the legal foundation for much of Trump’s tariff policy.

The ruling left unresolved what happens to the $133 billion already collected under the now-invalid tariff structure. Rather than issuing a clear directive for refunds or retention, the Court essentially punted the question to lower courts & future litigation. Justice Brett Kavanaugh, appointed by Trump himself, noted that the ruling did not decide whether or how the government should return the money—leaving the process “likely to be a mess.”

Who Could Get the Money Now?

With the Supreme Court opinion not specifying refund mechanics, several possibilities have emerged:

1. Importers & Businesses That Paid Tariffs

Many companies that paid tariffs under the old rules have already filed lawsuits seeking refunds. According to legal filing trackers, over a thousand companies have moved to reclaim their payments, arguing that they were unlawfully taxed.

In theory, if lower courts agree that tariffs were illegal, importers could receive refunds for the amounts they paid. But because much of the tariff cost was already passed downstream—whether absorbed by retailers or paid by consumers—the legal battle over who gets what could stretch on for years.

2. American Consumers (Indirectly)

One of Trump’s earlier proposals during the tariff surge was to use revenue to send a sort of “tariff dividend” or rebate to American households. In practice, this would have required separate legislation from Congress.

Even with the Supreme Court’s blow to the tariffs, if money is refunded to importers, there’s a question whether those refunds could ever trickle back to consumers who actually bore the economic burden. This is not a simple legal process, and no framework currently exists to systematically return refunds to individuals.

3. Federal Government & General Revenues

If no refunds are ordered or if only partial refunds are granted, the tariff revenue would remain in the U.S. Treasury’s general fund. Treasury funds are fungible: they pay for everything from military and infrastructure spending to social programs & debt service.

Before the Supreme Court’s ruling, some officials had proposed using tariff revenue to offset the federal deficit or fund various government programs. That money never had to be earmarked for any specific purpose unless Congress legislated such allocations.

So, absent refunds, that $133 billion could become part of the broader budget mix just like income taxes or corporate taxes are.

4. State Governments and Local Economies

Import data analysis suggests states like California, Texas, Georgia, Illinois, and New York paid significant portions of the now-overturned tariff revenue because of their large import activity.

If importers in these states secure refunds, it could mean billions flowing back into corporate balance sheets. However, that redistributed money still originally came from consumers, suppliers, & workers within those same states. Whether it stays there or diffuses nationwide through business investments is an open question.

What Happens Next? Legal & Economic Fallout

Because the Supreme Court did not directly order refunds, the path forward lies in the Court of International Trade & federal litigation. Judges there may have to decide:

• Whether all tariff collections must be returned

• How to allocate refunds among companies that passed costs to others

• Whether interest or damages are owed

• Whether consumers should ever be compensated

In the meantime, corporate plaintiffs await decisions that could stretch for years. Trump himself predicted prolonged litigation—which may take up to five years—to untangle these claims.

Beyond the courts, the economic implications are significant. Tariff revenue was a major influx into the federal budget in 2025. If courts order large refunds, the government could face pressure on its finances, necessitating cuts or alternative revenue sources.

Conclusion: A Complicated Legacy

At first glance, the idea that the United States collected $133 billion in tariff revenue under Trump might seem like a straightforward story of tax receipts. But the reality is far more complex:

• The money was mostly paid by U.S. importers, but economically borne by U.S. businesses and consumers.

• The Supreme Court invalidated the legal basis for the tariffs, raising fundamental questions about the legality of those revenues.

• Neither the Court nor Congress has yet resolved how refunds should work—or if they even must.

• The ultimate recipients of that money could range from corporate refund claimants to generalized government spending, or even remain in limbo for years.

In short, that $133 billion is no longer just a number—it’s a legal & economic puzzle that will play out in courtrooms, corporate balance sheets, & possibly the everyday lives of American families for the foreseeable future.

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