Trump’s broad import tariffs ruled illegal; U.S. Customs to suspend $175 billion in collections starting Tuesday.
Supreme Court Ruling on Trump Tariffs
The U.S. Supreme Court ruled that Donald Trump could not use the International Emergency Economic Powers Act (IEEPA) to impose broad import tariffs. Enacted in 1977, IEEPA had previously been used mainly for economic sanctions against national security threats.
The Trump administration had used these provisions to impose 10% tariffs on goods from nearly all countries worldwide. The court determined that the law doesn’t grant the president authority to create general tariff mechanisms of a fiscal and commercial nature, which remains a Congressional power requiring clear statutory authorization.
Financial and Administrative Consequences
The ruling has direct financial implications, with Reuters reporting that over $175 billion in tariff revenues collected under IEEPA could be subject to claims. U.S. Customs and Border Protection announced it will deactivate all tariff codes related to IEEPA-based regulations, effective Tuesday.
CBP did not explain why tariffs continued to be collected after the ruling or provide information about potential refund mechanisms to importers who paid after the Supreme Court decision. The agency only stated that additional guidelines would be provided through CSMS messages if appropriate.
Alternative Tariff Structure Remains
The suspension of IEEPA-based tariffs coincided with Trump’s announcement of a new 15% global tariff rate based on different legal provisions. This new tariff structure wasn’t affected by the Supreme Court ruling since it relies on separate statutory authorities.
The CBP decision specifically excludes tariffs imposed under Section 232 of the Trade Expansion Act of 1962 (national security provisions) and Section 301 of the Trade Act of 1974 (unfair trade practices), which remain in force.
Legal and Political Implications
The $175 billion amount could become the subject of legal disputes, as American importer organizations had previously questioned the legality of IEEPA-based tariffs. Trade law experts note that refunds would likely require individual claims or separate administrative decisions, with potentially lengthy verification processes.
The ruling limits presidential use of emergency provisions for trade policy without Congressional approval, though the administration maintains other tariff tools. The case represents a significant check on executive trade authority while highlighting ongoing trade tensions.