US to stop collecting tariffs deemed illegal Supreme Court on Tuesday | World News
Hours after the Supreme Court ruling, Donald Trump announced a 10% global tariff on almost all imports to the US under a rarely-used provision known as Section 122. (File photo)
The US Customs and Border Protection agency said it will halt collections of tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. EST (0501 GMT) on Tuesday, more than three days after the US Supreme Court declared the duties illegal.
The agency said in a message to shippers on its Cargo Systems Messaging Service (CSMS) that it will de-activate all tariff codes associated with President Donald Trump’s prior IEEPA-related orders as of Tuesday.
The IEEPA tariff collection halt coincides with Trump’s imposition of a new, 15% global tariff under a different legal authority to replace the ones struck down the Supreme Court on Friday.
CBP gave no reason why it was continuing to collect the tariffs at ports of entry days after the Supreme Court’s ruling, and its message offered no information about possible refunds for importers.
The message noted that the collection halt does not affect any other tariffs imposed 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.Story continues below this ad
Reuters reported on Friday that the Supreme Court decision mademore than $175 billionin US Treasury revenue generated the IEEPA tariffs subject to potential refunds, based on an estimate Penn-Wharton Budget Model economs.
Their estimate from a ground-up forecasting model showed that IEEPA-based tariffs were generating more than $500 million per day in gross revenue.
