US Customs halts collection of Trump tariffs after SC ruling
What's the story
The United States Customs and Border Protection (CBP) will stop collecting tariffs under the International Emergency Economic Powers Act (IEEPA), which were ruled illegal by the Supreme Court. The suspension will come into effect at 12:01am EST on Tuesday. The CBP has announced it will deactivate all tariff codes linked to President Trump's previous IEEPA-related orders. This comes as Trump imposed a new 15% global tariff under a different legal authority on Saturday.
Refund potential
Supreme Court ruling opens door for refunds
The Supreme Court ruling has made over $175 billion in US Treasury revenue from IEEPA tariffs eligible for possible refunds. Economists from the Penn-Wharton Budget Model estimated that these tariffs were generating more than $500 million daily in gross revenue. The CBP said it would provide further guidance to the trade community through Cargo Systems Messaging Service (CSMS) messages as needed.
Official statement
'Duties imposed under IEEPA will no longer be in effect'
The CBP said in a statement, "Duties imposed pursuant to IEEPA under the following presidential actions, including all modifications and amendments, will no longer be in effect and will no longer be collected for goods entered for consumption or withdrawn from warehouse for consumption." The statement also listed several executive orders under which duties would cease to be collected.