Major setback to Trump ‘Trade War’: tariff collection to stop from tomorrow after Supreme Court ruling

Washington (The Uttam Hindu): The reciprocal tariffs introduced by former US President Donald Trump, which had triggered trade tensions worldwide, are now set to be officially halted. Following a ruling by the Supreme Court of the United States last Friday declaring these duties unlawful, a significant update has emerged. The U.S. Customs and Border Protection (CBP) has announced that it will fully suspend the collection of the additional tariffs starting Tuesday in compliance with the court’s decision.

Tariff codes under IEEPA to be deactivated

According to a statement issued by CBP, the tariff collection imposed under the International Emergency Economic Powers Act (IEEPA) of 1977 will cease from 12:01 a.m. US time on Tuesday (10:30 a.m. IST). Importers have been informed that all related duty codes in cargo systems will be deactivated from the specified time.

Other Trump-era tariffs remain unaffected

The Supreme Court delivered its verdict last Friday, and within three days the administration announced the suspension of the tariff collection. However, this halt applies only to tariffs imposed under IEEPA. Duties introduced during Trump’s tenure under Section 232 (national security powers) and Section 301 (unfair trade practices) will not be impacted. The ruling has paused a key element of Trump’s trade agenda, which had disrupted supply chains and led to disputes with global economies.

$175 billion revenue under scrutiny, refund question remains

With the IEEPA-based tariffs now struck down, a new financial issue has emerged. Economists estimate that the United States could face pressure to refund more than $175 billion collected under these now-invalidated tariffs. These duties were reportedly generating over $500 million per day. So far, the US administration has not clarified whether the collected amount will be refunded to importers.