US to stop collecting Trump tariffs ruled illegal by supreme court

The Guardian World

by Alex Daniel

February 23, 2026

AI-Generated Deep Dive Summary

The US government has announced that it will cease collecting tariffs imposed under emergency powers following a Supreme Court ruling that deemed them illegal. This decision comes as financial markets grapple with the implications of President Trump's latest replacement tariffs. The move by the Customs and Border Protection (CBP) agency to deactivate all tariff codes linked to the International Emergency Economic Powers Act (IEEPA) has caused immediate market reactions, with the dollar dropping 0.4% against a basket of currencies and gold prices rising. The tariffs in question were initially imposed using IEEPA, which grants the president broad emergency powers to impose economic sanctions. However, the Supreme Court ruled them illegal due to their lack of proper legal foundation under US trade laws. While the CBP has halted collection of these specific tariffs, there is no immediate clarification on whether refunds for previously collected tariffs will be issued. This uncertainty has left investors and businesses in a state of limbo, particularly as Trump continues to roll out new levies in response. The decision to stop collecting these tariffs marks a significant shift in US trade policy, raising questions about the legality of future tariff implementations. The ruling also highlights the delicate balance between executive authority and legal constraints under international trade law. As global markets remain volatile, the situation underscores the broader challenges of navigating complex international trade relations and the potential for ongoing political and economic instability. This development is crucial for understanding the evolving landscape of US trade policy and its impact on global markets. The ruling not only sets a precedent for future tariff decisions but also reflects the ongoing tension between presidential authority and judicial oversight in matters of international commerce. As the situation unfolds, it will be closely watched by businesses, investors, and policymakers alike, who are seeking clarity on the implications for trade negotiations and market stability.

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Originally published on The Guardian World on 2/23/2026