US to halt collection of tariffs ruled illegal by Supreme Court

US Customs and Border Protection (CBP) said it will stop collecting certain tariffs that were declared unlawful by the US Supreme Court, effective 12:01 a.m. EST (0501 GMT) on Tuesday.

In a notice sent to shippers through its Cargo Systems Messaging Service, the agency said it will deactivate all tariff codes tied to President Donald Trump’s previous orders issued under the International Emergency Economic Powers Act (IEEPA).

The suspension comes more than three days after the Supreme Court ruled the IEEPA-based duties illegal. CBP did not explain why it continued collecting the tariffs in the days following the court’s decision, and the notice did not address whether importers would receive refunds.

The halt in IEEPA tariff collections coincides with the administration’s move to introduce a new 15 percent global tariff under a separate legal authority, replacing the measures struck down by the court.

CBP clarified that the suspension applies only to tariffs imposed under IEEPA and does not affect other trade measures introduced by the Trump administration. These include duties enacted under Section 232 of the Trade Expansion Act, which covers national security concerns, and Section 301 of the Trade Act, which addresses unfair trade practices.

The agency said it would provide further guidance to the trade community through additional messages as needed.

According to a Reuters report, the Supreme Court ruling could make more than $175 billion in revenue collected under the IEEPA tariffs subject to potential refunds. Economists at the Penn-Wharton Budget Model estimate that the IEEPA-based duties had been generating over $500 million per day in gross revenue for the US Treasury.