The U.S. Customs and Border Protection (CBP) agency has announced the suspension of the collection of certain tariffs, effective this Tuesday, following a decision by the U.S. Supreme Court. This decision follows a ruling last Friday that limits the president's authority to impose tariffs.
The CBP directive specifically concerns the additional ad valorem duties that had been put in place under the International Emergency Economic Powers Act (IEEPA). These duties were covered by seven presidential decrees signed between February 1, 2025, and August 6, 2025.
The Supreme Court ruled that the sweeping tariffs imposed by the Trump administration under the IEEPA were illegal. The court held that the IEEPA does not authorize the president to impose tariffs, as this power is reserved for Congress under the U.S. Constitution. This decision officially cancels the global tariffs introduced since last April.
According to the CBP, the additional ad valorem duties imposed under the IEEPA will no longer be in effect and will no longer be collected as soon as possible. The Trump administration has been authorized to take the necessary steps to end the collection of these duties.
According to an estimate by the Wharton School of Business at the University of Pennsylvania, the CBP collected up to $175 billion in customs duties under the IEEPA. Whether these taxes will be refunded to importers remains an open question.
In response to the Supreme Court's decision, President Trump announced his intention to impose new tariffs of 10% under Section 122 of the Trade Act of 1974. He later stated that he would increase these duties to 15%. This section authorizes the president to impose tariffs of up to 15% for a maximum period of 150 days to address balance of payments issues. Congress must approve any extension of these duties.
The repeal of the IEEPA tariffs will bring the overall average effective tariff rate back to 9.1 percent, the highest level since 1946, with the exception of 2025. If the IEEPA tariffs had remained in effect, that figure would have been 16.9 percent. With the new Section 122 tariffs at 15 percent, the average effective tariff rate would be about 13.7 percent.
The Supreme Court's decision opens up new perspectives in international trade but also leaves important questions pending regarding tariff refunds and the stability of trade agreements.
