U.S. Customs and Border Protection (CBP) announced it will stop collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) starting at 12:01 a.m. EST on Tuesday, following a U.S. Supreme Court decision that declared the duties illegal. In a notice to shippers through its Cargo Systems Messaging Service, the agency said it will deactivate all tariff codes tied to former President Donald Trump’s IEEPA-related orders.
The halt comes as Trump moves to replace the invalidated duties with a new 15% global tariff introduced under a different legal authority. CBP did not explain why collections continued for several days after the court’s ruling, nor did it provide details on whether importers would receive refunds for tariffs already paid. The agency clarified that the suspension applies only to IEEPA-based tariffs and does not affect other levies imposed under Section 232 national security provisions or Section 301 trade statutes.
Economists say the financial stakes are significant. According to the Penn-Wharton Budget Model, the Supreme Court decision could make more than $175 billion in previously collected revenue eligible for refunds. The model estimates that IEEPA tariffs had been generating over $500 million per day in gross revenue, underscoring the potential fiscal impact of the ruling on U.S. government finances.
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