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CBP to Halt Collection of IEEPA-Based Reciprocal Tariffs on Feb. 24 After Supreme Court Ruling

The step follows a decision that the emergency powers law does not grant the president authority to impose tariffs.

Overview

  • U.S. Customs and Border Protection said it will stop collecting tariffs imposed under the International Emergency Economic Powers Act on Feb. 24.
  • President Trump signed a Feb. 20 executive order directing an expeditious end to collection following the high court’s decision.
  • The Supreme Court held that IEEPA does not confer tariff-imposing power on the president, rejecting the administration’s argument.
  • Reporting indicates the administration plans to replace the now-ended 15% reciprocal tariffs, including on Japan, with a uniform 10% tariff under Trade Act Section 122.
  • The Treasury urged all countries to honor trade agreements, as affected IEEPA measures included tariffs tied to issues involving Canada, Mexico, China, and Brazil.