The U.S. Customs and Border Protection (CBP) announced that it will stop collecting reciprocal tariffs starting at midnight on the 24th. This decision comes after the Supreme Court ruled the collection was illegal. Originally a flagship policy of former President Trump's administration, these reciprocal tariffs will be rescinded less than a year after their implementation last spring.

In conjunction with the cessation of these tariffs, President Trump signed an executive order to impose new tariffs on various countries, grounded in Section 122 of the Trade Act of 1974. Although Trump initially proposed a 10% rate for these new tariffs on the 20th, he later indicated a willingness to increase this rate to 15% on the 21st, reflecting a potentially more aggressive trade stance. The tariffs being removed were instituted under the International Emergency Economic Powers Act (IEEPA) and affected around 70 countries, including additional tariffs on China, Canada, Mexico, and Brazil.

The changes in tariff policy signal a shift in U.S. trade strategy, transitioning from a reliance on reciprocal tariffs to a more structured legal framework. Such moves may have significant implications for U.S. relationships with its trading partners and could lead to escalated trade tensions. The overall impact of these tariff adjustments will need to be monitored as reactions from affected countries unfold, as each seeks to respond to these developing trade policies.