US Halts Supreme Court-Declared Illegal Tariffs, Raising Questions on Refunds

The US Customs and Border Protection (CBP) agency will cease collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) from 12:01 a.m. EST (0501 GMT) on Tuesday, more than three days after the US Supreme Court ruled the duties unlawful.

In a message to shippers via its Cargo Systems Messaging Service (CSMS), CBP confirmed that all tariff codes linked to former President Donald Trump’s IEEPA-related orders will be deactivated from Tuesday.

The halt in IEEPA tariff collections comes as Trump introduced a new 15 per cent global tariff under a different legal authority, intended to replace the Supreme Court-struck duties. CBP did not explain why collections continued at ports of entry following the Court’s ruling and provided no information regarding potential refunds for importers.

The agency emphasised that the suspension applies only to IEEPA tariffs and does not affect other duties imposed under Trump’s Section 232 national security statute or Section 301 unfair trade practices statute. “CBP will provide additional guidance to the trade community through CSMS messages as appropriate,” the notice said.

Economists at the Penn-Wharton Budget Model told Reuters on Friday that the Supreme Court decision could make more than $175 billion in US Treasury revenue from IEEPA tariffs eligible for refunds. Their estimate, based on a ground-up forecasting model, indicated that these tariffs were generating over $500 million in gross revenue daily.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.