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US To Halt Collection of Tariffs from February 24, 2026, Following Supreme Court Ruling

Written by: Akshay ShivalkarUpdated on: 23 Feb 2026, 10:27 pm IST
The US will stop collecting IEEPA‑based tariffs from February 24, 2026, after a Supreme Court ruling deemed the duties illegal.
US To Halt Collection of Tariffs from February 24, 2026, Following Supreme Court Ruling
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The US Customs and Border Protection (CBP) agency has announced that it will halt the collection of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The decision follows a recent Supreme Court verdict that declared such duties unlawful.

The agency confirmed that tariff collection will cease from 12.00 am EST on February 24, 2026. The move comes three days after a similar statement was published on the White House website on February 20, signalling a coordinated compliance effort following the ruling.

CBP Issues Order to End IEEPA Tariff Collection

CBP said in its official order that all duties imposed under IEEPA, including amendments and modifications made under former President Donald Trump’s actions, will no longer apply. The revised guidelines state that any goods entering US commerce on or after 12.00 am EST on February 24 will not be subject to these tariffs.

The directive was communicated to shippers through the agency’s Cargo Systems Messaging Service. CBP also said that all tariff codes linked to Trump‑era IEEPA orders will be de‑activated from the effective date.

Clarification On Scope of Tariff Withdrawal

CBP emphasised that the change applies exclusively to IEEPA‑related duties. The order noted that other tariff regimes remain unaffected by the decision.

Tariffs imposed under Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 will continue to be enforced without modification. This distinction aims to maintain clarity for importers navigating multiple trade‑related obligations.

Implications For Trading Partners and Importers

The withdrawal of IEEPA duties affects several countries including India, China and Bangladesh, among others that were paying tariffs under Trump’s 2025 action. Importers sourcing from these jurisdictions are no longer required to pay duties referenced under the invalidated authority.

The CBP order did not offer clarity on whether refunds will be issued for duties collected since last year. Traders are awaiting further guidance, as uncertainty remains regarding the process for potential reimbursements.

New Blanket Tariff to Replace Invalidated Duties

The halt in IEEPA‑related tariffs coincides with the introduction of a new blanket 15% tariff beginning February 24. This tariff, implemented under a different legal authority, is intended to replace the duties struck down by the Supreme Court.

The timing highlights a shift in strategy by the Trump administration to maintain broad tariff coverage despite the judicial setback. The CBP order did not provide details on how the new tariff structure interacts with existing trade rules.

Read More: India–US Interim Trade Deal Talks Rescheduled Amid Tariff Policy Uncertainty.

Conclusion

The US decision to stop collecting IEEPA‑based tariffs from February 24 follows a Supreme Court ruling deeming them illegal. CBP has begun de‑activating related tariff codes and clarified that other tariff mechanisms remain unchanged.

The move impacts several trading partners who had been paying additional duties under Trump‑era actions. With a new 15% blanket tariff taking effect on the same day, importers face a transitional period marked by regulatory adjustments and unresolved questions around duty refunds.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 23, 2026, 4:51 PM IST

Akshay Shivalkar

Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.

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