U.S. Customs and Border Protection Halts IEEPA Tariff Collections: Implications and Next Steps

The U.S. Customs and Border Protection will stop collecting IEEPA tariffs following a Supreme Court ruling. While new tariffs are introduced, the halt raises questions about potential refunds. The change affects only IEEPA tariffs, not others under different laws. Potential refunds could impact over $175 billion in U.S. revenue.

The U.S. Customs and Border Protection (CBP) agency has announced it will cease collections of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) starting at 12:01 a.m. EST on Tuesday. This cessation follows the U.S. Supreme Court's declaration that such duties are illegal.

In a message communicated to shippers via its Cargo Systems Messaging Service (CSMS), the agency indicated that it would deactivate all tariff codes linked to orders issued by former President Donald Trump related to the IEEPA, effective Tuesday.

This decision by the CBP follows Trump's introduction of a new 15% global tariff, which is based on an alternative legal framework. While no reasons for the continuation of tariff collections post-Supreme Court ruling were offered, the agency made it clear that these changes do not impact other tariffs enforced under different statutes, such as the Section 232 and Section 301 tariffs.