The United States will stop collecting tariffs imposed under the International Emergency Economic Powers Act from 12:01 a.m. EST on February 24, the U.S. Customs and Border Protection agency has announced, days after the Supreme Court ruled the duties unlawful.
In a message circulated to shippers through its Cargo Systems Messaging Service, CBP said it would deactivate all tariff codes linked to prior IEEPA-related orders issued during Donald Trump’s presidency. The move follows the Supreme Court’s February 20 decision declaring those tariffs illegal.
The halt in collections coincides with the imposition of a new 15 percent global tariff introduced under a different legal authority. Officials indicated that while IEEPA-based tariffs would cease, other trade measures remain unaffected, including those imposed under Section 232 on national security grounds and Section 301 addressing unfair trade practices.
CBP did not explain why collections continued at ports for several days after the court’s ruling. The agency’s communication also did not clarify whether importers would receive refunds for duties already paid under the invalidated framework.
The financial implications are significant. According to earlier estimates by economists at the Penn-Wharton Budget Model, IEEPA-based tariffs had generated more than $175 billion in revenue for the U.S. Treasury and were yielding over $500 million per day before the ruling. The Supreme Court’s decision now raises the prospect of large-scale refund claims.
CBP said further guidance would be issued to the trade community through additional CSMS updates. [KNT]
