U.S. Customs and Border Protection (CBP) will stop collecting tariffs previously enforced under the International Emergency Economic Powers Act (IEEPA) effective Tuesday at 12:01 a.m. (GMT+7). The suspension follows a Supreme Court ruling that invalidated former President Donald Trump’s use of IEEPA to impose widespread tariffs.
In a notice communicated to shippers, the agency stated that all tariff codes linked to Trump’s earlier IEEPA-related orders would be disabled as of February 24. Other tariffs authorized under separate statutes, including Section 232 (national security) and Section 301 (unfair trade practices), remain intact and are unaffected by this action.
The Supreme Court determined that Trump’s application of the 1977 IEEPA statute exceeded the powers granted to the president, affirming a lower court’s assessment. According to the ruling, the IEEPA does not provide the president with unchecked authority to impose tariffs, as the power to regulate taxes and trade duties remains with Congress.
Following the Supreme Court’s ruling, Trump has invoked Section 122 of the 1974 Trade Act to raise global import duties to 15%. Tariffs have played a significant part in Trump’s trade policy during his second term, intensifying international trade tensions and contributing to global market volatility. Trump has maintained that tariff measures are essential to protect U.S. economic interests.
However, with the Supreme Court’s ruling, the U.S. could be liable for potential refunds totaling more than $175 billion, according to estimates from the Penn-Wharton Budget Model, as IEEPA-based tariffs were generating over $500 million in gross revenue per day. So far, CBP has not provided any details regarding possible refunds for importers.
