U.S. Customs and Border Protection (CBP) announced it will deactivate tariff codes tied to former President Donald Trump’s emergency trade measures after the U.S. Supreme Court ruled those duties illegal.
According to a notice distributed Monday through the Cargo Systems Messaging Service (CSMS), Customs will stop collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) at 05:01 am GMT on Tuesday. The agency confirmed that all tariff codes linked to the earlier IEEPA orders will be shut off.
However, CBP did not clarify why it continued collecting the duties after the court’s decision, nor did it state whether companies that already paid the now-invalid tariffs will receive refunds.
Halt Applies Only to IEEPA Tariffs
The suspension strictly applies to tariffs imposed under IEEPA. Other trade measures introduced during Trump’s administration remain intact
Duties under Section 232, which address national security concerns, continue to apply. Likewise, tariffs under Section 301, targeting unfair trade practices, are unaffected by the Supreme Court ruling.
New Global Tariff Takes Effect
The legal reversal comes as Trump moves forward with a new round of tariffs under a separate legal framework.
Within hours of the Supreme Court decision, Trump announced a 10% global tariff on imports from all countries, effective Tuesday. He later increased that rate to 15%, marking a significant escalation in U.S. trade policy.
The Court’s ruling had struck down several IEEPA-based tariffs targeting major Asian exporters, including China, South Korea, Japan, and Taiwan. Taiwan’s inclusion is especially notable given its central role in global semiconductor production.
China and Europe React
China’s Commerce Ministry said it is conducting a “full assessment” of the ruling and urged Washington to remove what it described as “unilateral tariff measures.”
Trump is expected to visit China in late March and early April for meetings with President Xi Jinping, adding further significance to the unfolding trade developments.
In Europe, lawmakers are reviewing their own trade arrangements. The European Union had previously agreed in Turnberry, Scotland, to remove several import duties on U.S. goods, including maintaining zero tariffs on U.S. lobsters.
However, uncertainty now surrounds whether Trump’s new 15% global tariff will override prior agreements. European Parliament trade committee chair Bernd Lange warned that if the new tariff stacks on top of existing duties, some EU exports - including certain cheeses - could face total tariffs approaching 30%.
The EU Parliament postponed a scheduled vote on trade adjustments and will reconvene on March 4 to reassess the situation.
Global Trade Uncertainty Deepens
South Korea’s Industry Minister Kim Jung-kwan urged coordinated action between the public and private sectors to protect export competitiveness and diversify markets, signaling broader concern among U.S. trading partners.
The sudden deactivation of IEEPA tariffs combined with the rollout of a new 15% global import duty creates significant uncertainty for international businesses. Companies must now navigate shifting legal authorities, overlapping tariff regimes, and potential retaliatory measures.
While the Supreme Court ruling eliminates one set of contested duties, the introduction of new tariffs ensures that global trade tensions remain elevated.
