U.S. Customs Stops Collecting Illegal Tariffs on February 24. What Are Trump’s Other Alternatives?

The U.S. Customs and Border Protection Agency clarified through its cargo system message service that, starting from February 24th Eastern Time, tariffs imposed under the International Emergency Economic Powers Act (IEEPA) will no longer be collected. Goods entering the consumer market or being extracted from warehouses for consumption on or after that day will not be subject to these tariffs.

On February 20th, the U.S. Supreme Court announced a ruling that the Trump administration’s large-scale tariff policies implemented last year under the guise of IEEPA bypassing Congress were illegal. The relevant tariff policies mainly fall into three categories: a 10% “baseline tariff,” fentanyl tariffs, and reciprocal tariffs. These unilateral measures violate both international trade rules and U.S. domestic law, and are not in the interests of all parties.

In response, Trump immediately invoked Section 122 of the Trade Act of 1974 to raise global temporary tariffs to 15% for 150 days. According to the Yale University Budget Laboratory, after the new tariffs were imposed, the effective U.S. tariff rate increased to 13.7%.

Unlike IEEPA, which does not explicitly authorize the head of state to use “tariff tools,” Section 122 of the Trade Act authorizes the President to resolve international balance of payments deficits through tariffs of up to 15%. Trump believed that the U.S. trade deficit and the risk of a significant dollar devaluation met the requirements of this law.

From recent statements by Trump and Treasury Secretary Yellen, the White House’s core priority is not to quickly push for tariff refunds but to explore alternative tariff tools, such as using Section 301 of the Trade Act to design personalized tariffs for each major trading partner.

Since last year, Trump has also authorized the Department of Commerce to impose a series of tariffs on industries such as automobiles, steel, aluminum, and copper under Section 232 of the Trade Expansion Act of 1962, which typically requires months of investigation around the so-called national security concerns. Notably, the new 15% tariffs will not stack on top of the 232 tariffs.

The White House’s latest announcement also listed certain goods exempt from temporary import tariffs, mainly related to so-called U.S. national security or goods that are difficult to produce domestically, such as certain medicines, critical minerals, and defense-related products.

The White House reaffirmed that all goods involving “small exemptions” will be subject to the new tariffs. Starting August 29, 2025, all imported goods valued below $800 shipped through channels other than international postal networks will be subject to all applicable export country tariffs. Individual sellers on platforms like Shein, Temu, eBay, and Etsy are heavily affected.

U.S. trade measures are subject to frequent changes, which will once again impact the U.S. economy and global trade. Lippski, Chair of International Economics at the Atlantic Council think tank, said this serves as a reminder that the market’s previous expectation of a tariff stabilization period in 2026 was incorrect.

China is conducting a comprehensive assessment of the related impacts and closely monitoring the alternative measures Trump is preparing to take, firmly safeguarding Chinese interests. Additionally, the European Parliament’s International Trade Committee, which was scheduled to vote on the proposed U.S.-EU trade agreement, has halted the process and requested the U.S. to provide more details on the new tariff plans for re-evaluation.

(Source: Jiemian News)