Federal Agency Ends Collection of Court-Ruled Illegal Tariffs Tuesday

U.S. Customs and Border Protection will cease collecting tariffs ruled unconstitutional by the Supreme Court starting Tuesday at midnight. The agency continued collecting the duties for several days after Friday's high court ruling that declared them illegal.

Federal customs officials announced they will discontinue collecting tariffs that the Supreme Court ruled unconstitutional, effective Tuesday at 12:01 a.m. Eastern time.

U.S. Customs and Border Protection informed shipping companies through its cargo messaging system that all tariff codes linked to former President Donald Trump’s International Emergency Economic Powers Act orders will be deactivated as of Tuesday morning.

The Supreme Court struck down these duties as illegal on Friday, yet the customs agency continued collecting them at entry points for more than three days following the ruling. Officials provided no explanation for the delay in implementation.

This cessation of IEEPA-based tariff collection occurs simultaneously with Trump’s introduction of a replacement 15% worldwide tariff using different legal authority.

The customs agency’s notice did not address whether importers who paid the now-illegal tariffs might receive refunds. The message also clarified that other Trump-era tariffs remain unaffected, including those enacted under national security provisions and unfair trade practice statutes.

“CBP will provide additional guidance to the trade community through CSMS messages as appropriate,” the agency stated.

According to Reuters reporting, the Supreme Court’s decision potentially subjects over $175 billion in Treasury revenue from these IEEPA tariffs to refund claims. Economists from the Penn-Wharton Budget Model estimated these particular tariffs were bringing in more than $500 million daily in gross revenue.