Supreme Court Abolishes Tariffs, Yet a New 15% Tax Takes Effect

Buzzline

The U.S. Supreme Court has just invalidated billions in tariffs, leading to significant consequences.  Beginning at 12:01 a.m. on Tuesday, U.S. Customs and Border Protection will cease the collection of tariffs deemed illegal. These duties, enforced under the International Emergency Economic Powers Act, had brought in over $175 billion to the U.S. Treasury.  However, the situation doesn't end here. Simultaneously as these tariffs are lifted, a new 15% global tariff will commence under a different legal framework.  Will companies get refunds? Why did collections persist for days post-ruling? What implications does this have for the trajectory of U.S. trade policy?  This abrupt change has the potential to transform global trade instantly.  Stay updated and subscribe for more urgent economic news.

Transcript

00:00What happens when the Supreme Court shuts down billions in tariffs overnight?

00:04In a dramatic turn, the U.S. will stop collecting certain tariffs at exactly 12 or 1 a.m. Tuesday.

00:10These tariffs were imposed under the International Emergency Economic Powers Act.

00:14But last Friday, the Supreme Court ruled them illegal.

00:18Now, U.S. Customs and Border Protection says it will deactivate all related tariff codes.

00:23Here is where it gets interesting.

00:25Even after the ruling, tariffs kept being collected for days.

00:29No explanation was given.

00:31And there is still no word on refunds for importers.

00:34The stakes are massive.

00:36Economists estimate these tariffs generated more than $175 billion for the U.S. Treasury.

00:42That is over $500 million every single day.

00:45But the story does not end there.

00:47At the same time these tariffs stop, a new 15% global tariff will take effect under a different legal

00:53authority.

00:54So while one door closes, another opens.

00:57The big question now is simple.

00:59Will businesses get their money back?

01:01Or is this just the start of another trade battle?

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