US Customs will stop collecting tariffs imposed under IEEPA following the Supreme Court’s decision striking down Trump’s reciprocal ‘Liberation Day’ duties.
Duties under Section 232 and Section 301 remain in force; no clarity yet on importer refunds.
The ruling affects over $175 billion in Treasury revenue, while India–US trade talks have been postponed.
The US Customs and Border Protection agency said it will stop collecting tariffs imposed under the International Emergency Economic Powers Act at 10:31 AM (12:01 AM EST) on Tuesday. The move comes after the US Supreme Court struck down the reciprocal tariffs imposed by US President Donald Trump on ‘Liberation Day.’
As per reports, the agency said in a message to shippers on its Cargo Systems Messaging Service (CSMS) that it will deactivate all tariff codes under the IEEPA-related reciprocal tariffs.
3 February 2026
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However, the department provided no reason as to why it was continuing to collect tariffs at ports of entry days after the apex court’s ruling on Friday. The message also offered no details about possible refunds for importers.
The message further highlighted that the collection halt does not affect any other tariffs imposed by Trump, including those under the Section 232 national security statute and the Section 301 unfair trade practices statute. "CBP will provide additional guidance to the trade community through CSMS messages as appropriate," the agency said.
According to a Reuters report, the Supreme Court decision impacts over $175 billion in US Treasury revenue generated under the reciprocal tariffs associated with IEEPA.
On Saturday, the Trump administration revamped the global tariffs to 10% initially, quickly followed by a raise to 15% on Sunday. This is the highest level allowed under Section 122 of the Trade Act of 1974. The law is rarely used and allows a president to impose a maximum tariff of 15% for 150 days.
"I, as President of the United States of America, will be, effective immediately, raising the 10% worldwide tariff on countries, many of which have been 'ripping' the US off for decades without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," Trump posted on Truth Social.
Meanwhile, ongoing trade negotiations between New Delhi and Washington have been halted, and a meeting between the top officials of the two countries scheduled to begin on February 23 has been postponed. India and the US have agreed to reschedule the talks to a later date, as per reports by PTI.
