U.S. Customs announced on the 24th that they will stop collecting the unconstitutional tariffs imposed by Trump, but there is still no update on the $175 billion tax refund.

U.S. Customs and Border Protection announced that on February 24th, it will officially cease collecting retaliatory tariffs imposed under the International Emergency Economic Powers Act (IEEPA). However, whether the approximately $175 billion in IEEPA tariff revenue will be refunded remains unanswered to this day.
(Background: Trump’s late-night escalation! Global tariffs increased from 10% to 15%, Bitcoin fluctuating around $68,000)
(Additional context: Trump’s counterattack: 10% global tariffs added, $175 billion tax refund bomb waiting to explode)

On the 20th, the U.S. Supreme Court ruled 6-3 that Trump’s unilateral imposition of retaliatory tariffs based on the IEEPA was unconstitutional. Today, U.S. Customs and Border Protection (CBP) stated that it will stop collecting IEEPA tariffs at 12:01 a.m. Eastern Time on the 24th.

The authorities did not explain why the delay was three days. According to estimates from the Wharton School at the University of Pennsylvania, the daily gross revenue from IEEPA tariffs exceeds $500 million. The three-day “delay in enforcement” means at least $1.5 billion in additional tariffs were collected after the legal basis was overturned.

The $175 Billion Refund Dilemma

But a bigger question remains: what about the money already collected?

According to U.S. Customs data, by December last year, the federal government had collected approximately $134 billion in IEEPA tariffs from over 300,000 importers. With subsequent collections, the total is estimated to have exceeded $175 billion.

The Supreme Court’s ruling does not mention refunds. The subsequent executive order signed by Trump, “Terminating Certain Tariff Actions,” states only that IEEPA tariffs are no longer effective and should be “ceased as soon as possible,” but makes no mention of refunds either.

This means the $175 billion refund issue has been kicked back to the U.S. Court of International Trade. If importers want to recover the overpaid tariffs, they must file lawsuits themselves.

In other words, the Supreme Court is telling you “this money shouldn’t have been collected,” but not telling you it will be returned. For companies that have already passed the tariff costs onto consumers, even if they eventually get a refund, the extra amount paid by consumers will not automatically be returned.

150-Day Countdown Begins

Currently, Trump’s tariff strategy is shifting from presidential orders to “legal guerrilla warfare.” After the Supreme Court blocked the use of IEEPA, Section 122 immediately came into play. If Section 122 expires in 150 days and Congress does not extend it, it’s hard to rule out Trump finding a third legal avenue to continue his tariff crusade.

For the market, the uncertainty surrounding tariffs has become even more unclear…