The US will stop collecting duties deemed illegal by the Supreme Court
U.S. Customs and Border Protection announced that it will stop collecting duties imposed under the International Emergency Economic Powers Act at 00:01 Eastern Time on Tuesday. This comes more than three days after the U.S. Supreme Court ruled the duties illegal.
In a notice to carriers via the Cargo Systems Messaging Service, the agency said that all tariff codes related to previous President Donald Trump's orders under the IEEPA would be deactivated as of Tuesday.
The end of IEEPA tariffs coincides with the entry into force of a new global tariff of 15 per cent, which Donald Trump introduced under a different legislative mechanism to replace the tariffs overturned by the Supreme Court.
U.S. Customs and Border Protection did not explain why it continued to collect duties at ports of entry for several days after the court's decision. The announcement also does not contain information about possible compensation for importers.
The agency clarified that the termination of IEEPA duties does not apply to other duties imposed by Donald Trump, including those under Section 232 on national security and Section 301 on unfair trade practices.
U.S. Customs and Border Protection stated that it would provide additional clarification to the trade community through CSMS messages as needed.
According to economists at Penn Wharton Budget Model, the Supreme Court's decision could make more than $175 billion in U.S. budget revenues from IEEPA tariffs subject to possible refunds. According to their calculations, these tariffs generated more than $500 million in gross revenue per day.
