US Customs and Border Protection (CBP) said on Monday it will halt collection of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) at 12:01 a.m. EST (0501 GMT) on Tuesday, more than three days after the US Supreme Court declared the duties illegal, according to Reuters.
In a message to shippers on its Cargo Systems Messaging Service (CSMS), the agency said it will de-activate all tariff codes associated with President Donald Trump’s earlier IEEPA-related orders as of Tuesday.
The halt in IEEPA tariff collections coincides with Trump’s imposition of a new 15% global tariff under a different legal authority, intended to replace the duties struck down by the Supreme Court on Friday.
CBP gave no reason for continuing to collect the tariffs at ports of entry in the days following the court ruling, and its message provided no information on potential refunds for importers.
The agency noted that stopping IEEPA collections does not affect other tariffs imposed by Trump, including those under the Section 232 national security statute and the Section 301 unfair trade practices statute.
“CBP will provide additional guidance to the trade community through CSMS messages as appropriate,” the agency said.
Reuters reported on Friday that the Supreme Court decision put more than US$175 billion in US Treasury revenue generated by the IEEPA tariffs at risk of potential refunds, based on estimates by Penn-Wharton Budget Model economists. Their ground-up forecasting model estimated the IEEPA-based tariffs were generating more than US$500 million per day in gross revenue.