The United States government will stop collecting emergency tariffs imposed by President Donald Trump starting Tuesday, following a US Supreme Court ruling that declared the tariffs illegal three days ago.
US Customs and Border Protection (CBP) confirmed in a statement that tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA) will no longer be collected from 12:01 a.m. Tuesday (10:30 a.m. Indian time). The agency has instructed importers to remove all IEEPA-related tariff codes from their cargo systems.
Economists at the Penn Wharton Budget Model estimate that the ruling could force the US government to refund more than $175 billion (around ₹15.75 lakh crore) in revenue. According to Reuters, the IEEPA tariffs had been generating over $500 million (around ₹4,500 crore) per day, and companies may now seek refunds for previously paid duties.
Despite the court setback, President Trump continued his aggressive tariff rhetoric. He warned that any country attempting to “play games” with the United States over trade agreements would face even higher tariffs
Trump’s remarks come as the US plans to impose a 15% baseline tariff on all countries, including India, starting Tuesday. Several countries, including Britain, Australia, and New Zealand, have expressed opposition, arguing that their trade agreements with the US were based on a 10% tariff cap. The Trump administration has not clarified whether these deals will be renegotiated.
Following the ruling, Trump claimed that the Supreme Court’s decision had inadvertently strengthened his authority. Writing on Truth Social, he said the ruling gave him more power to impose tariffs under other legal frameworks. He also criticized the court’s decision as “stupid” and divisive internationally.
Trump said he could use alternative mechanisms, including licensing restrictions and other trade laws, to impose stronger measures against countries he believes are unfairly trading with the US. He claimed that remaining tariffs had been legally strengthened by the court’s ruling.
It remains unclear whether companies and importers will receive refunds for tariffs collected in the three days following the court decision. CBP did not explain why collections continued during this period.
The order applies only to tariffs imposed under the IEEPA Act. Tariffs imposed under Section 232 (national security) and Section 301 (Unfair Trade Act) will remain in effect and are not affected by the ruling.
CBP said it will continue to provide updates to trade partners through official communications.