Economy February 23, 2026

U.S. Customs to Halt Collection of IEEPA-Based Tariffs Starting Feb. 24

Agency pauses duties tied to Trump-era IEEPA orders after Supreme Court ruling; other levies remain intact

By Priya Menon
U.S. Customs to Halt Collection of IEEPA-Based Tariffs Starting Feb. 24

U.S. Customs and Border Protection announced it will stop collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) beginning at midnight eastern time on February 24. The move follows a U.S. Supreme Court decision finding that the president exceeded authority when using the IEEPA to impose certain trade duties. Customs said the pause covers fentanyl-related tariffs, levies on imports linked to Venezuelan oil, broad "reciprocal" tariffs tied to trade surpluses, and tariffs on Brazil. Duties enacted under other legal authorities, including 25% aluminum tariffs and 25% auto-part levies, remain in force. The administration has proposed new, universal tariffs under Section 122, but those measures would require congressional approval after 150 days and could face legal challenges because Section 122 has not previously been used.

Key Points

  • U.S. Customs will stop collecting IEEPA-based tariffs from midnight eastern time on February 24 following a Supreme Court decision limiting presidential authority under the IEEPA.
  • Tariff categories covered by the pause include fentanyl-related tariffs, duties on imports tied to Venezuelan oil, the broad "reciprocal" tariffs aimed at countries with large trade surpluses, and tariffs on Brazil.
  • Tariffs imposed under other legal frameworks remain in place - notably 25% tariffs on aluminum and 25% levies on auto parts - while proposed universal tariffs under Section 122 would require congressional approval after 150 days.

U.S. Customs and Border Protection said on Sunday it will cease collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) starting at midnight, February 24, eastern time. The agency communicated the change via its Cargo Systems Messaging Service.

The agency's announcement comes days after the U.S. Supreme Court found that the president had exceeded his authority when issuing trade tariffs under the IEEPA. Customs clarified that the court's decision applies to duties levied under the IEEPA, and that collection of those specific tariffs will stop on the stated date and time.

Customs listed the categories of duties that will no longer be collected under the IEEPA: the so-called fentanyl tariffs, tariffs targeting countries that import Venezuelan oil, the broad "reciprocal" tariffs aimed at nations with large trade surpluses against the United States, and tariffs that had been imposed on Brazil.

At the same time, Customs emphasized the limited scope of the Supreme Court ruling. Tariffs enacted under other statutory authorities are unaffected by the decision and will remain in place. That includes the 25% aluminum tariffs and 25% duties on auto parts that had been applied under different legal frameworks.

In response to the court's decision, the president announced a plan to impose universal tariffs first at 10% and then raised to 15% under a separate statute - Section 122. Those proposed duties rely on a legal authority that has not been used by a prior president.

Officials have noted two constraints tied to the Section 122 route. First, any tariffs implemented under Section 122 would require Congressional approval to remain in force after 150 days. Second, because Section 122 is untested in this context, the measures could invite additional legal challenges going forward.


Clear summary

U.S. Customs will stop collecting tariffs imposed under the IEEPA from midnight eastern time on February 24 after a Supreme Court ruling that limited presidential authority under that law. The pause affects fentanyl-related tariffs, duties on imports linked to Venezuelan oil, broad reciprocal tariffs tied to trade imbalances, and tariffs on Brazil. Other duties, including 25% tariffs on aluminum and 25% levies on auto parts enacted under different laws, will remain active. The administration has signaled new universal tariffs under Section 122, which would require congressional approval after 150 days and could face legal challenges.

Risks

  • Legal uncertainty around Section 122 - because it has not previously been used, tariffs imposed under this statute could be subject to further court challenges, affecting trade-exposed sectors such as metals, automotive components, and energy-related imports.
  • Temporary status of Section 122 tariffs - duties implemented under Section 122 would need congressional approval to remain after 150 days, creating potential volatility for importers, supply chains, and manufacturers reliant on affected inputs.
  • Narrow scope of the Supreme Court ruling - since the decision covers only IEEPA-based tariffs, businesses and sectors still face exposure to other standing duties, such as the 25% aluminum and 25% auto parts tariffs, which continue to affect input costs and procurement strategies.

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