U.S. Customs to Stop Collecting Tariffs Ruled Illegal by the Supreme Court
The agency said it will stop collecting duties imposed under the International Emergency Economic Powers Act (IEEPA) starting Tuesday.
Quick overview
- U.S. Customs and Border Protection will suspend the collection of tariffs imposed under emergency powers following a Supreme Court ruling that deemed them unlawful.
- The agency will deactivate all tariff codes related to Trump's previous orders under the International Emergency Economic Powers Act starting Tuesday.
- The suspension does not affect other tariffs imposed by Trump under different statutes, and the potential for refunds on over $175 billion in revenue is now at risk.
- In response to the ruling, Trump announced an increase in global tariffs from 10% to 15% and signed an executive order establishing a new global 10% tariff set to take effect on February 24.
U.S. Customs and Border Protection (CBP) confirmed it will suspend the collection of tariffs imposed under emergency powers following the Supreme Court’s ruling that the measures enacted by President Donald Trump were unlawful.
The agency said it will stop collecting duties imposed under the International Emergency Economic Powers Act (IEEPA) starting Tuesday.
Through its Cargo Systems Messaging Service (CSMS), CBP announced it will deactivate all tariff codes linked to Trump’s previous IEEPA-related orders. However, the agency did not explain why tariffs were still being collected at ports of entry days after the Court’s decision, nor did it provide guidance on potential refunds for importers.
CBP уточно clarified that the suspension does not affect other tariffs imposed by Trump, including those enacted under Section 232 of the national security statute and Section 301 of the unfair trade practices statute.
According to Reuters, the Supreme Court ruling puts more than $175 billion in U.S. Treasury revenue generated from IEEPA tariffs at risk of potential refunds, based on estimates from economists at the Penn-Wharton Budget Model.
Trump’s response to the ruling
“As President of the United States of America, I will, with immediate effect, raise the global tariffs of 10% announced the day before to the fully authorized level of 15%,” Trump wrote on his Truth Social platform, in response to the Supreme Court decision, which he described as “ridiculous” and “extraordinarily anti-American.”
The White House said the new rate applies to countries and blocs with trade agreements with Washington, including the European Union, Japan, South Korea, and Taiwan—some of which had previously negotiated a maximum tariff rate of 15%.
Last Friday, from the Oval Office, Trump signed an executive order establishing a new global 10% tariff, scheduled to take effect on February 24 for an initial 150-day period, with sectoral exemptions including pharmaceuticals and goods entering the country under the Mexico–Canada trade agreement.
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