Reviewed by Gotrade Internal Analyst
Gotrade News - U.S. Customs and Border Protection (CBP) confirmed that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) will no longer be collected starting Tuesday (24/02). This follows the Supreme Court's 6-3 ruling on Friday (21/02) that declared the tariffs unconstitutional.
But don't expect smooth sailing for global trade just yet. President Trump wasted no time announcing a replacement 15% flat-rate global tariff, set to kick in on the exact same day under a completely separate legal authority.
Key Takeaways:
- IEEPA tariffs officially end on February 24, but a new 15% global levy under different legal authority takes effect the same day
- Roughly $175 billion in previously collected tariff revenue could be subject to refunds, though the refund mechanism remains unclear
- Markets are already rattled, with the dollar weakening and gold surging as trade policy uncertainty climbs back up
According to Seeking Alpha, CBP notified importers via its Cargo Systems Messaging Service that all IEEPA-related duties would stop being collected for goods entering consumption as of 12:00 a.m. Eastern Time on February 24. However, the agency offered zero guidance on potential refunds for tariffs already paid.
Estimates from the Penn Wharton Budget Model suggest that unwinding the IEEPA tariffs could trigger up to $175 billion in refunds. The same model also warned that future tariff revenue collections would drop by half unless another source fills the gap.
Markets Reacted Fast, and It Wasn't Pretty
Monday's (23/02) market response was swift. According to The Guardian, the U.S. dollar slid 0.4% against a basket of major currencies, while gold jumped 0.6% to $5,135 per ounce, hitting its highest level since late January.
S&P 500 futures dipped 0.5% on Monday morning. Bitcoin also took a hit, dropping as much as 4.8% to $64,300 before clawing back some ground to $65,734, a clear sign of risk-off sentiment across the board.
London's FTSE 100 slipped 0.2% in early trading. Susannah Streeter from Wealth Club noted that the post-Supreme Court euphoria was already fading fast once Trump rolled out replacement tariffs.
Trade Uncertainty Is Back in Full Swing
ING economists pointed out that Trump's moves since the court ruling make one thing crystal clear: tariffs remain his go-to trade weapon. They also flagged that escalation risks are now higher than a year ago, especially with European leaders pushing back harder.
The new 15% global tariff can stay in place for up to 150 days under its separate legal authority. That means markets are staring down at least five months of fresh uncertainty ahead.
China's Commerce Ministry responded on Monday (23/02) by calling on Washington to scrap the tariffs entirely. Beijing said it was running a full assessment of the court ruling's impact, adding that trade wars produce no winners and protectionism is a dead end.
On the U.S. side, officials scrambled to reassure trade partners that existing deals still hold. U.S. Trade Representative Jamieson Greer emphasized that the administration would stand by its agreements, including the deal with the UK announced last May.
The Supreme Court ruling also casts doubt on Trump's previously floated $2,000 tariff dividend for American citizens. ING economists noted that the potentially drawn-out refund litigation only adds to skepticism about whether that promise will ever materialize.
That’s the market update worth watching today. Follow Gotrade News for timely coverage on US stocks, ETFs, and macro moves that shape market direction. For a structured starter guide, visit the Gotrade Blog to learn the basics and build your plan.
If you want to act on this news, track price moves and review your portfolio in the Gotrade app. You can start investing in US stocks and ETFs with $1, then align your next steps with your goals and risk profile. Download and open the Gotrade app now!
Reference:
-
Seeking Alpha, U.S. to end collection of IEEPA tariffs on Tuesday, days after Supreme Court ruling. Accessed on February 23, 2026
-
The Guardian, US to stop collecting Trump tariffs ruled illegal by supreme court. Accessed on February 23, 2026
-
Featured Image: Shutterstock
