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

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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.

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

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Mexico Deploys 2,000 Troops to Jalisco After El Mencho’s Fall

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Mexican authorities have deployed an additional 2,000 military troops to the western state of Jalisco following renewed violence after the reported capture and death of cartel kingpin Nemesio Oseguera, widely known as “El Mencho.”

 

Security forces moved swiftly into the region as tensions escalated in the aftermath of the operation that brought down one of the most feared drug lords in the country. The reinforcement is aimed at preventing retaliatory attacks, dismantling remaining criminal cells, and restoring public order.

 

Oseguera was the leader of the powerful Jalisco New Generation Cartel (CJNG), a group long considered one of the most violent and influential drug trafficking organizations in Mexico. Under his command, the cartel expanded its operations across multiple states and was linked to high-profile attacks on security forces.

 

The western state of Jalisco has historically served as the stronghold of the cartel, making it a flashpoint for clashes between criminal groups and federal forces. Following news of Oseguera’s capture and death, reports emerged of road blockades, vehicle burnings, and sporadic gunfire in parts of the state.

 

Authorities say the military deployment is part of a broader stabilization effort designed to deter further unrest and prevent power struggles within the cartel’s ranks. Security analysts warn that the fall of a major crime boss often creates a temporary vacuum, sometimes triggering violent infighting as rival factions compete for control.

 

For residents of Jalisco, the heavy military presence brings both reassurance and anxiety. While many hope it signals a turning point in the fight against organized crime, others fear potential reprisals in the coming days.

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The federal government has yet to release detailed information on the operation that led to Oseguera’s capture and death, but officials insist that security operations will remain active in the region to ensure stability.

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EU Demands Clarity from U.S. After Supreme Court Strikes Down Trump Tariffs

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The European Commission has urged the United States to honour the terms of last year’s EU-U.S. trade agreement following a fresh wave of tariff uncertainty triggered by a U.S. Supreme Court ruling.

 

After the Supreme Court of the United States invalidated  President Donald Trump’s sweeping global tariffs, Trump responded by announcing new across-the-board levies. Brussels said Washington must now provide “full clarity” on how it intends to proceed and whether the new measures are consistent with the existing bilateral deal.

 

“The current situation is not conducive to delivering fair, balanced, and mutually beneficial transatlantic trade,” the Commission said, stressing that the agreement reached last year remains binding. “A deal is a deal.”

 

The statement marked a sharper tone compared to the Commission’s earlier reaction when it said it was still assessing the court’s ruling.

 

Under the 2025 EU-U.S. trade arrangement, most EU exports to the U.S. face a 15% tariff ceiling, with exemptions for certain goods such as aircraft and spare parts. In return, the EU reduced duties on a range of American products and shelved plans for retaliatory tariffs.

 

However, uncertainty now surrounds whether Trump’s newly announced 15% tariffs override the agreed framework. If so, existing exemptions could be scrapped, and new duties might be layered on top of standard U.S. “most-favoured-nation” rates, something the deal was designed to prevent.

 

Analysts warn that the EU’s competitive edge under the 15% cap could also erode, as countries without specific agreements may now face similar rates.

 

Trade monitor Global Trade Alert estimates the EU economy could be 0.8 percentage points worse off under the new tariff regime, with Italy potentially hit harder at 1.7 percentage points.

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The Commission warned that unpredictable tariff changes risk undermining investor confidence and destabilizing global markets. EU Trade Commissioner Maros Sefcovic has already held talks with the U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick in a bid to clarify Washington’s position.

 

Brussels insists that EU exports must continue to receive the “most competitive treatment” under the agreed ceiling, warning that any deviation could strain transatlantic trade relations.

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Zelensky: Putin Has Already Started World War III

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Ukraine’s President, Volodymyr Zelensky, has accused Russia’s leader, Vladimir Putin, of already starting what he described as “World War Three,” insisting that only sustained military and economic pressure can stop Moscow.

In an interview with the BBC in Kyiv, Zelensky rejected calls for Ukraine to surrender territory in exchange for a ceasefire, warning that any withdrawal from occupied regions would weaken the country and divide its people.

 

“I believe that Putin has already started it,” Zelensky said. “The question is how much territory he will be able to seize and how to stop him.”

 

Russia currently controls around 20% of Ukraine’s territory, including parts of Donetsk, Kherson, and Zaporizhzhia. Zelensky dismissed suggestions that conceding land could secure peace, arguing that Putin would only use a pause in fighting to rebuild and resume aggression.

 

“He would probably be satisfied for a while… but once he recovers, he will continue,” Zelensky warned, adding that Russia could regroup within a few years.

 

Despite mounting pressure from some Western quarters, including remarks from the U.S. President Donald Trump urged Ukraine to move quickly toward talks. Zelensky maintained that Ukraine would not lose the war.

 

“Will we lose? Of course not, because we are fighting for our independence,” he said.

 

Zelensky acknowledged that reclaiming all occupied territory, including borders as they stood in 1991, would take time and depends heavily on continued Western military support. He stressed that victory ultimately means preserving Ukraine’s sovereignty and preventing further Russian expansion beyond Ukraine.

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On U.S. support, Zelensky said security guarantees must be backed by Congress to outlast political changes in Washington. He also indicated that elections in Ukraine could only take place once security conditions improve, rejecting claims that he is clinging to power.

 

“Our victory,” he said, “is the preservation of our independence and justice.”

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