Billions at Stake as U.S. Stops Illegal Tariff Collections

The U.S. Customs and Border Protection (CBP) has announced it will stop collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA), following last week’s ruling by the Supreme Court of the United States declaring the duties unlawful.

According to a notice issued to shippers through CBP’s Cargo Systems Messaging Service, all tariff codes linked to former President Donald Trump’s IEEPA-based orders will be deactivated effective 12:01 a.m. EST (0501 GMT) on Tuesday.

The suspension comes more than three days after the Supreme Court struck down the measures. The agency did not explain the delay in halting collections at U.S. ports, nor did it provide guidance on whether importers will receive refunds for duties already paid.

The pause in IEEPA-related collections coincides with the introduction of a fresh 15% global tariff announced by Trump under a separate legal authority. That move effectively replaces the invalidated measures but keeps overall tariff pressure in place.

CBP clarified that the suspension applies only to tariffs imposed under the emergency powers law. Other trade measures; including those enacted under Section 232 on national security grounds and Section 301 addressing unfair trade practices remain in force.

The agency said further updates would be communicated to the trade community as necessary.

The Supreme Court decision has significant financial implications. Economists at the Penn-Wharton Budget Model estimate that more than $175 billion in revenue collected under the IEEPA tariffs could now be subject to potential refund claims. Their analysis suggests the duties had been generating over $500 million per day in gross revenue for the U.S. Treasury.

The development adds another layer of uncertainty for businesses navigating shifting U.S. trade policies.