Supreme Court Strikes Down Trump Tariffs, U.S. Customs to Halt Collection Tuesday
U.S. Customs and Border Protection (CBP) will cease collecting duties imposed under a series of executive orders signed by former President Donald Trump, after the Supreme Court ruled those tariffs illegal last week. The halt in collection takes effect at 12:01 a.m. Eastern Time on Tuesday, February 24, 2026, according to Reuters.
Despite the Supreme Court’s ruling finding Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify the tariffs invalid, U.S. Importers continued to pay the duties as the CBP worked to update its Cargo System Management Service. The agency’s statement, published on govdelivery.com, confirmed the impending change.
“Duties imposed pursuant to IEEPA under the following presidential actions, including all modifications and amendments, will no longer be in effect and will no longer be collected for goods entered for consumption or withdrawn from warehouse for consumption, on or after 12:00 a.m. Eastern time on February 24, 2026,” the CBP statement read.
The tariffs being rescinded stem from several executive orders, including those addressing illicit drugs crossing the northern border, the situation at the southern border, the synthetic opioid supply chain originating in China, Venezuelan oil imports, and trade practices contributing to U.S. Trade deficits. Specifically, the orders covered by the CBP announcement are:
- Executive Order 14193, Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border (February 1, 2025)
- Executive Order 14194, Imposing Duties To Address the Situation at Our Southern Border (February 1, 2025)
- Executive Order 14195, Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China (February 1, 2025)
- Executive Order 14245, Imposing Tariffs on Countries Importing Venezuelan Oil (March 24, 2025)
- Executive Order 14257, Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits (April 2, 2025)
- Executive Order 14323, Addressing Threats to the United States by the Government of Brazil (July 30, 2025)
- Executive Order 14329, Addressing Threats to the United States by the Government of the Russian Federation (August 6, 2025)
The Supreme Court’s 6-3 decision marked a significant setback for the former president. Notably, two of the three justices appointed by Trump joined the majority in striking down the tariffs. The ruling did not address the question of refunds for tariffs already paid, a point Justice Brett Kavanaugh raised in his dissent, suggesting the refund process could be complex.
Following the Supreme Court’s decision, Trump announced plans to implement a new 10 percent global tariff, though an executive order enacting this plan has not yet been issued. The initial tariffs struck down by the court had led to increased government revenue, with tariff collections reaching approximately $30 billion per month – four times the amount collected before Trump’s return to office. In January 2026, tariffs accounted for just over 5% of overall government revenue.
The impact of the tariffs has been a subject of debate. According to a working paper from Harvard University professor Gita Gopinath and University of Chicago economist Brent Neiman, the cost of Trump’s tariffs has largely been borne by U.S. Importers, rather than foreign suppliers as the former president claimed. Some importers have attempted to mitigate these costs by shifting production to countries with lower tariff rates; for example, the percentage of U.S. Imports originating from China fell from 12% in 2024 to approximately 8% by September of last year.
The halt in tariff collection comes as companies prepare to seek billions of dollars in refunds, potentially reaching an estimated $175 billion. However, the path to securing these refunds remains uncertain, with legal experts anticipating potential challenges and delays.
