Highlights:
- Trump administration directs CBP to stop collecting tariffs imposed under IEEPA
- Supreme Court ruled the IEEPA-based Trump tariffs illegal
- CBP to deactivate all related tariff codes effective 12:01 a.m. EST Tuesday (Feb. 24)
- New 15% global Trump tariff to take effect under separate legal authority
- More than $175 billion in collected revenue may be subject to refunds
The Trump administration will stop collecting certain tariffs after the US Supreme Court ruled they were imposed unlawfully. The decision marks a significant development in the ongoing legal and economic impact of Trump-era trade policies.
US Customs and Border Protection (CBP) confirmed it will halt the collection of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) beginning at 12:01 a.m. EST (0501 GMT) on Tuesday, February 24. The move follows a Supreme Court ruling issued Friday, February 20, declaring those Trump tariffs illegal.
In a message sent to shippers through its Cargo Systems Messaging Service (CSMS), CBP stated it will deactivate all tariff codes associated with President Donald Trump’s earlier IEEPA-related executive orders as of Tuesday. The deactivation formally ends the collection of those specific Trump tariffs at US ports of entry.
Trump Tariffs Under IEEPA Ruled Illega
The Supreme Court ruling directly affects tariffs implemented by the Trump administration under IEEPA authority. These Trump tariffs had been justified under emergency economic powers but were challenged in court. The high court’s decision invalidated the legal basis for those duties.
Despite the ruling on Friday, CBP continued collecting the tariffs for several days. The agency did not explain why collections continued after the Supreme Court’s decision. It also did not clarify how importers who already paid the now-invalid Trump tariffs will be treated.
“CBP will provide additional guidance to the trade community through CSMS messages as appropriate,” the agency said.
The halt applies strictly to tariffs imposed under IEEPA. Other Trump tariffs remain in force. These include duties implemented under Section 232 of the Trade Expansion Act, which addresses national security concerns, and Section 301 of the Trade Act of 1974, which targets unfair trade practices. Those tariff programs are unaffected by the Supreme Court ruling.
Trump Introduces New 15% Global Tariff
While ending the IEEPA-based tariffs, the Trump administration is simultaneously implementing a new 15 percent global tariff under a different legal authority. This new Trump tariff framework is intended to replace the invalidated duties.
The administration has not provided detailed guidance on how the transition between the IEEPA tariffs and the new global Trump tariff will affect importers in operational or financial terms. However, the legal distinction is clear: the Supreme Court ruling applies only to tariffs imposed under IEEPA authority.
The introduction of a new Trump tariff policy underscores the administration’s continued reliance on trade measures as a central economic strategy, even as it navigates judicial constraints.
Potential $175 Billion Refund Exposure Linked to Trump Tariffs
The financial consequences of the Supreme Court ruling on the Trump tariffs could be substantial. According to reporting by Reuters on Friday, more than $175 billion in revenue collected under the IEEPA-based Trump tariffs could potentially be subject to refunds.
The estimate is based on analysis from economists at the Penn-Wharton Budget Model. Their forecasting model found that the IEEPA tariffs were generating more than $500 million per day in gross revenue for the US Treasury before the ruling.
If refund claims move forward, the Trump administration could face significant repayment obligations to importers who paid duties under the now-invalid tariff structure. As of now, CBP has not provided details on the refund process or whether repayments will be automatic or require formal claims.
The ruling raises immediate operational and financial questions for businesses involved in international trade. Importers, customs brokers, and supply chain operators are likely to seek clarification on compliance obligations, refund procedures, and the impact of the new Trump global tariff framework.
What This Means for Businesses and Trade Policy
The Supreme Court’s decision represents a direct judicial check on a portion of the Trump administration’s trade policy. At the same time, the administration’s swift move to replace the invalidated tariffs with a new 15 percent global tariff indicates that broader Trump tariff strategy remains in effect.
- For importers, the key developments are clear:
- IEEPA-based Trump tariffs will no longer be collected after 12:01 a.m. EST on February 24.
- Other Trump tariffs under Section 232 and Section 301 remain active.
- A new 15 percent global Trump tariff will take effect under separate authority.
- Refund questions tied to an estimated $175 billion remain unresolved.
As the Trump administration transitions away from the struck-down tariffs, attention will shift to implementation of the new global tariff structure and the potential fiscal impact of refund obligations. Further guidance from CBP is expected through official CSMS communications.
