US Customs to Halt Collection of Supreme Court-Blocked Tariffs Starting Tuesday
The United States will stop collecting certain import tariffs ruled illegal by the Supreme Court starting early Tuesday, according to an announcement by U.S. Customs and Border Protection (CBP).
CBP confirmed that it will halt the collection of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) at 12:01 a.m. EST (0501 GMT) on Tuesday. The move comes more than three days after the U.S. Supreme Court determined that the duties were unlawful.
In a message issued to shippers through its Cargo Systems Messaging Service (CSMS), the agency stated that it will deactivate all tariff codes linked to prior IEEPA-related orders issued by President Donald Trump. The suspension of collections applies specifically to those tariffs declared illegal by the Court.
The halt in IEEPA tariff collections coincides with the introduction of a new 15% global tariff imposed by Trump under a different legal authority. The new measure replaces the tariffs that were struck down by the Supreme Court on Friday.
CBP did not provide an explanation for continuing to collect the IEEPA-based tariffs at U.S. ports of entry in the days following the Supreme Court ruling. The agency’s notice also did not address whether importers may receive refunds for duties already paid.
Importantly, the suspension does not impact other tariffs introduced during the Trump administration, including duties imposed under Section 232 of the Trade Expansion Act on national security grounds and Section 301 of the Trade Act addressing unfair trade practices.
“CBP will provide additional guidance to the trade community through CSMS messages as appropriate,” the agency said in its update.
The Supreme Court’s decision has significant fiscal implications. Economists from the Penn-Wharton Budget Model estimate that more than $175 billion in U.S. Treasury revenue generated from the IEEPA tariffs could be subject to potential refunds. Their ground-up forecasting model showed that the IEEPA-based tariffs were producing more than $500 million per day in gross revenue prior to the ruling.
The development marks a major shift in U.S. trade policy enforcement and could have wide-reaching consequences for importers, global supply chains, and federal revenue projections.
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