The U.S. Supreme Court has ruled that tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA) are unlawful, throwing the legal basis for the duties into question and leaving an estimated $8.2 billion worth of imported goods in legal limbo. The court found the president lacked the legal authority to impose such comprehensive import tariffs.
In response, U.S. Customs and Border Protection (CBP) announced it will halt collections of IEEPA-based tariffs effective 12:01 a.m. EST on Tuesday, February 24, 2026. The agency will deactivate all related tariff codes in its electronic cargo-tracking and classification systems. However, this action comes more than three days after the Supreme Court's ruling, during which collections continued at ports of entry, causing confusion and delays.
The immediate consequence is significant disruption for importers. Businesses face shipment delays, are being charged potentially invalid duties, and have goods flagged for review due to outdated systems. Several companies have begun lodging formal protests and corrections of entry with Customs. Trade bodies warn that without swift action from CBP, supply chains could suffer from longer delays, higher storage fees, and late deliveries.
Financially, the ruling has major implications. The IEEPA tariffs were generating over $500 million per day in gross revenue, with more than $175 billion in total Treasury revenue now potentially subject to refunds. Importers who have already paid are uncertain about reimbursement processes.
Concurrently, the Trump administration has moved to implement a new 15% global tariff under Section 122 of the Trade Act of 1974, which takes effect as the IEEPA tariffs are halted. This law grants the president authority to impose temporary tariffs to address balance-of-payments problems for up to 150 days unless Congress extends it. However, legal experts express doubt that this narrower authority fully aligns with the administration's sweeping trade policies, and analysts anticipate potential court challenges, adding to market uncertainty. Other existing trade measures, like Section 232 and Section 301 tariffs, remain unaffected.
