The US Customs authorities announced the suspension of tariffs based on the International Emergency Economic Powers Act (IEEPA) starting at midnight on the 24th, three days after the Supreme Court deemed these tariffs illegal.
On the 23rd, US Customs and Border Protection (CBP) announced that it would suspend the collection of tariffs under the International Emergency Economic Powers Act (IEEPA) starting at 12:01 AM on the 24th. This decision comes three days after the Supreme Court ruled that these tariffs were unlawful. Despite the Supreme Court's decision, importers had been required to pay these tariffs during the weekend due to a lag in CBP's systems that had not yet been updated to reflect the ruling.
The announcement detailed that all tariff codes linked to the previous administrative orders by former President Donald Trump would be deactivated as of the 24th. However, the CBP did not provide an explanation on why tariffs were still collected in the days following the Supreme Court's ruling. Moreover, there was no information included on the processes or timelines for refunds to importers who had paid the tariffs in the interim.
The CBP indicated that the timing of the suspension aligns with the implementation of a new 15% global tariff based on Trade Law Section 122, effectively transitioning from the illegal tariffs to this new system. This change means that while the legal grounds for the tariffs have shifted, the overarching policy of high tariffs on imported goods remains intact. The suspension will not affect existing tariffs under Trade Expansion Act Section 232 (national security tariffs) and Trade Act Section 301 (unfair trade tariffs).
