The Trump administration has refunded around $100bn (£74bn) of the $165bn collected through tariffs later ruled illegal by the US supreme court, according to reports cited by the Financial Times. The refunds relate to Donald Trump's "liberation day" tariffs, a central plank of his economic strategy since returning to office, which the supreme court partially struck down in February, forcing the government to repay affected companies. The issue matters because tariffs have not delivered the budgetary benefits Trump promised, with the federal deficit continuing to grow despite the additional revenue.

Customs officials reported the $100bn figure, representing 60% of the total owed, to the US court of international trade on Tuesday. The federal deficit reached $1.37tn in the first nine months of the fiscal year, up 2% on the same period last year. Separately, Trump imposed fresh tariffs of 10-12.5% on more than 80 countries last month under section 301 of the Trade Act, citing forced labour concerns, but this has triggered a lawsuit from 25 US states, including one led by New York attorney general Letitia James, who argue the levies are an unlawful attempt to replace the tariffs already struck down.