JECohen says tariff refunds lift US deficit but portfolio impact remains muted - TLT News | RalliesJECohen says tariff refunds lift US deficit but portfolio impact remains muted
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TLT• Tariff refunds push deficit higher
- JECohen flagged accelerating tariff refunds following a February Supreme Court ruling that struck down “Liberation Day” tariffs under IEEPA.
- U.S. Customs and Border Protection accepted USD 129 billion in refund claims for processing, with roughly 40% still pending.
- June refunds hit a record USD 49.2 billion versus USD 23.6 billion collected, driving three straight months of net outflows.
- Refunds lifted the annual deficit to about USD 1.8 trillion, with the CBO projecting USD 2.1 trillion for the full year.
- National debt topped USD 40 trillion; Treasury buybacks increased to help contain long-term yields and borrowing costs.
