US Halts Illegal Tariff Collections After Supreme Court Ruling/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. Customs and Border Protection will stop collecting tariffs imposed under the International Emergency Economic Powers Act after the Supreme Court ruled them illegal. The halt takes effect Tuesday at 12:01 a.m. EST. More than $175 billion in previously collected tariff revenue could be subject to potential refunds.
US Stops IEEPA Tariffs Quick Looks
- Tariff collections halted at 12:01 a.m. EST Tuesday
- Supreme Court ruled IEEPA tariffs illegal
- CBP deactivating tariff codes tied to Trump orders
- $175 billion in revenue potentially subject to refunds
- New 15% global tariff imposed under separate authority
- Section 232 and Section 301 tariffs remain in place
- IEEPA tariffs generated $500M+ per day
Deep Look: US Halts Illegal Tariff Collections After Supreme Court Ruling
The U.S. government will officially stop collecting certain import tariffs deemed illegal by the Supreme Court of the United States, marking a significant shift in trade enforcement policy.
The U.S. Customs and Border Protection (CBP) announced that it will halt collections of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) effective 12:01 a.m. EST Tuesday. The move comes more than three days after the high court invalidated the duties, ruling that President Donald Trump lacked the legal authority to impose them.
Tariff Codes Deactivated
In a message distributed through CBP’s Cargo Systems Messaging Service (CSMS), the agency said it would deactivate all tariff codes associated with prior IEEPA-related executive orders. The notice was directed at shippers and trade partners, signaling immediate operational changes at U.S. ports of entry.
CBP did not provide an explanation for why collections continued in the days following the Supreme Court’s ruling. Nor did the agency outline plans for reimbursing importers who paid the now-invalidated duties.
Officials said further guidance will be issued to the trade community through future CSMS updates.
Billions at Stake
The halted collections involve tariffs that generated substantial federal revenue. Economists at the University of Pennsylvania’s Penn Wharton Budget Model estimate that more than $175 billion collected under the IEEPA tariffs could be subject to refund claims.
According to their analysis, the duties were generating over $500 million per day in gross revenue before the court’s decision.
If refunds are ordered — whether through legislation or litigation — the financial impact on the U.S. Treasury could be significant.
New Tariffs Replace Old Ones
The halt coincides with Trump’s decision to impose a new 15% global tariff under a different legal authority. The new measure is designed to replace the IEEPA-based tariffs struck down by the Supreme Court.
Administration officials have argued that alternative statutes provide sufficient authority to maintain trade pressure on foreign partners. However, the rapid legal pivot underscores ongoing uncertainty surrounding U.S. trade policy.
Importantly, the collection halt applies only to IEEPA-related tariffs. Other duties imposed by the administration remain unaffected, including those enacted under:
- Section 232 of the Trade Expansion Act (national security tariffs)
- Section 301 of the Trade Act (unfair trade practices tariffs)
These tariffs continue to be enforced at ports nationwide.
Trade Community Watches for Refund Guidance
The absence of immediate refund guidance leaves importers and businesses in limbo. Many companies absorbed the tariff costs directly or passed them on to consumers through higher prices.
Legal experts anticipate potential waves of refund claims, particularly if lower courts interpret the Supreme Court’s decision as requiring reimbursement of unlawfully collected duties.
At the same time, the introduction of the new 15% tariff may limit the broader economic impact of the halt, as importers continue to face elevated trade costs under the revised framework.
Ongoing Legal and Political Debate
The Supreme Court’s ruling represents one of the most consequential judicial rebukes of executive trade authority in recent decades. It narrows how presidents can invoke emergency powers to reshape global trade relationships.
Still, the administration’s quick shift to alternative legal authorities signals that tariff-driven trade policy remains central to Trump’s economic strategy.
For businesses, the immediate takeaway is operational: IEEPA tariffs will no longer be collected as of early Tuesday. But the longer-term implications — including possible refunds, new legal challenges, and shifting trade dynamics — remain unresolved.
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