US Customs Halts Collection of Tariffs Ruled Illegal by Supreme Court

The US Customs and Border Protection has halted the collection of certain tariffs after the US Supreme Court ruled that the duties were imposed without proper executive authority, marking a significant shift in trade enforcement policy.

According to an internal notice circulated to importers and customs brokers, tariff codes associated with the disputed measures have been deactivated, effectively suspending further collection at ports of entry. The move follows a landmark decision in which the Supreme Court determined that the administration exceeded its emergency powers in implementing sweeping global tariffs.

The ruling has immediate implications for businesses that had been paying the additional duties on imported goods. Trade lawyers say affected companies may now seek refunds for payments made under the invalidated measures, though the process could involve detailed administrative reviews.

The case centered on the scope of executive authority under existing trade statutes. In its opinion, the court emphasized that significant tariff actions require clear congressional authorization and cannot be justified solely on broad interpretations of emergency provisions.

Importers and supply chain operators welcomed the suspension, arguing that the tariffs had raised costs and contributed to price pressures. Industry associations said the decision could ease financial strain on manufacturers and retailers that rely on foreign inputs.

However, trade policy analysts cautioned that uncertainty remains. The administration has indicated it is reviewing alternative legal pathways to maintain leverage in international negotiations. Any new measures would need to comply with the boundaries outlined by the court.

Financial markets reacted cautiously, with investors assessing the broader impact on trade relations and domestic industries. Economists note that the ruling may also influence future presidential actions in areas where statutory authority is contested.

As customs officials implement the decision at ports nationwide, attention is turning to how lawmakers and the executive branch will respond. The episode underscores the complex balance between trade strategy, economic policy and constitutional limits on executive power.