US Customs Agency to Stop Collecting "Illegal" Tariffs From Tomorrow

The US Customs and Border Protection said it will stop collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) from 12:01 a.m. EST (0501 GMT) on Tuesday, more than three days after the US Supreme Court ruled the duties illegal. The suspension marks a significant shift in US trade enforcement following the court’s decision.

In a notice issued to shippers through its Cargo Systems Messaging Service, CBP said it would deactivate all tariff codes linked to prior IEEPA-related orders issued by President Donald Trump.

New Tariff Replaces IEEPA Duties

The halt in IEEPA tariff collections coincides with Trump’s imposition of a fresh 15 per cent global tariff under a separate legal authority. The new levy is intended to replace the IEEPA-based duties struck down by the Supreme Court on Friday.

CBP did not explain why collections continued at ports of entry for several days after the court ruling. The agency’s message also did not address whether importers would receive refunds for duties already paid.

Other Tariffs To Stay

CBP clarified that the suspension applies only to IEEPA-linked tariffs. Duties imposed under Section 232, which covers national security measures, and Section 301, addressing unfair trade practices, remain unaffected.

“CBP will provide additional guidance to the trade community through CSMS messages as appropriate,” the agency said.
According to a report by Reuters, the Supreme Court’s decision potentially places more than USD 175 billion in US Treasury revenue at risk of refunds. Economists at the Penn-Wharton Budget Model estimated that IEEPA-based tariffs were generating over USD 500 million per day in gross revenue before being invalidated.

The financial and legal implications of the ruling are expected to unfold as further guidance is issued to importers and trade stakeholders.

Also Read: After Supreme Court Setback, Trump Again Raises Global Tariffs to 15%