U.S. Customs and Border Protection will stop collecting tariffs imposed under the International Emergency Economic Powers Act from 12:01 a.m. EST on Tuesday, following a Supreme Court ruling that declared the duties unlawful.
The agency said it would deactivate all tariff codes linked to President Donald Trump’s prior IEEPA-related orders, more than three days after the court’s 6-3 decision struck down most of the levies. The halt applies specifically to tariffs imposed under the emergency statute and does not affect duties introduced under other legal authorities, including Section 232 on national security grounds and Section 301 covering unfair trade practices.
The suspension coincides with the administration’s move to introduce a new 15% global tariff under a different statutory basis, replacing the measures invalidated by the court. Customs provided no explanation for continuing to collect the IEEPA tariffs in the days following the ruling and did not outline procedures for potential refunds to importers.
The legal and fiscal implications are significant. Reuters reported that more than $175bn in US Treasury revenue generated by the IEEPA tariffs could now be subject to refund claims, citing estimates from Penn-Wharton Budget Model economists. Their ground-up forecasting model indicated the tariffs were producing over $500m per day in gross revenue before the ruling.
The Supreme Court’s decision centred on the scope of presidential authority under the emergency law, concluding that it did not authorise the imposition of tariffs in the manner adopted. The judgement reasserts judicial limits on executive trade powers, with immediate operational consequences for customs enforcement and potential financial exposure for the government.
Further guidance to the trade community is expected through the agency’s Cargo Systems Messaging Service, as importers assess compliance adjustments and the prospect of restitution claims arising from duties collected under the invalidated regime.
