WASHINGTON, July 13 (Reuters) - Growing refunds from

President Donald Trump's illegal tariffs pushed the June federal

budget deficit up to $120 billion, the U.S. Treasury Department

said on Monday, marking a sharp turnaround from the $27 billion

surplus in June 2025 that was due partly to his imposition of

the import duties.

The Treasury reported gross customs duty collections of

$23.6 billion but refunds of $49.2 billion, resulting in a net

outflow of $25.6 billion for the month. Total June receipts

declined by $31 billion, or 6%, to $496 billion compared to the

year-earlier period.

Outlays for June were $616 billion, up $117 billion, or 23%,

from the reported June 2025 total. But the Treasury said that

June 2025 outlays were reduced by $97 billion due to calendar

shifts in benefit payments. On an adjusted basis, the June

deficit was up $53 billion, or 79%, from the prior-year adjusted

deficit of $67 billion.

The Treasury's gross interest outlays for public debt in

June rose $41 billion, or 28%, to $185 billion, but this figure

was partially offset by a $10 billion, or 17%, increase in

interest received by federal trust funds to $70 billion.

For the fiscal year to date, the deficit rose $29 billion,

or 2%, to $1.367 trillion. Receipts for that period were up $143

billion, or 4%, to $4.151 trillion, while outlays rose $172

billion, or 3%, to $5.518 trillion.