U.S. Customs will stop collecting tariffs imposed under emergency powers from Tuesday

Source Cryptopolitan

U.S. Customs and Border Protection said on Monday that it will stop collecting tariffs imposed under the International Emergency Economic Powers Act at 05:01 am GMT on Tuesday after the U.S. Supreme Court ruled those duties illegal.

The agency sent the notice through its Cargo Systems Messaging Service, known as CSMS, and told importers the affected tariff codes will be shut off.

Customs confirmed that every tariff code linked to Trump’s earlier IEEPA orders will be deactivated, though it did not explain why it kept collecting those tariffs at ports after the court ruling. It also did not say whether companies that already paid will get refunds, as far as Cryptopolitan’s analysis of the notice.

US Customs halts IEEPA collections

The CSMS message made clear that the halt applies only to tariffs tied to Trump’s emergency powers under IEEPA. It does not apply to other tariffs imposed by Trump under different laws. Duties under Section 232, which covers national security cases, remain in place. Tariffs under Section 301, which deal with unfair trade practices, also remain active.

Customs said it will send more instructions to the trade community if needed. The statement read, “CBP will provide additional guidance to the trade community through CSMS messages as appropriate.”

The halt takes effect the same day Trump begins enforcing a new global tariff under a different legal authority. Within hours of the Supreme Court ruling, Trump said he would impose a 10% duty on imports from all countries starting Tuesday. He later increased that rate to 15%.

The Supreme Court ruling struck down several tariffs that the Trump administration had imposed on Asian export economies. The list included China, South Korea, Japan, and Taiwan. Taiwan is home to the world’s largest chipmaker and plays a key role in global tech supply chains.

Governments respond as new tariffs take effect

China said it is conducting a “full assessment” of the ruling. The Chinese ministry urged Washington to lift what it called “unilateral tariff measures.” The ministry said, “U.S. unilateral tariffs violate international trade rules and U.S. domestic law, and are not in the interests of any party.” It also stated, “Cooperation between China and the United States is beneficial to both sides, but fighting is harmful.”

The Commerce Ministry added, “China will continue to pay close attention to this and firmly safeguard its interests.” It also said, “Tariff policy should be based on rigorous assessment, not political preference.”

Trump plans to visit China in late March and early April, when he will meet President Xi Jinping.

In Europe, lawmakers are reviewing their own trade plans. The European Union assembly has been debating proposals to remove many import duties on U.S. goods. Those proposals are part of a deal reached in Turnberry, Scotland, last July. The package also includes continued zero duties on U.S. lobsters, first agreed with Trump in 2020. The proposals still need approval from both the European Parliament and EU governments.

The Parliament’s trade committee postponed a vote that had been scheduled for Tuesday. Committee chair Bernd Lange said the new temporary U.S. tariff could raise levies on some EU exports. Bernd said no one knows what happens after the 150-day period ends. Lawmakers will reconvene on March 4 to assess whether the United States clarifies its position and confirms its commitment to last year’s deal.

It remains unclear whether Trump’s new 15% tariff overrides the EU agreement. If it does, the EU’s zero-tariff exemptions could disappear. The new tariff could also be added on top of existing most-favored-nation duties. For some cheeses, the added 15% could bring the total tariff close to 30%. Bernd said that about 7% to 8% of EU products could face tariffs above the rates agreed last year.

Meanwhile, South Korea’s Industry Minister Kim Jung-kwan said on Monday: “The public and private sector need to work together to secure Korean companies’ export competitiveness and diversify their markets.”

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