WASHINGTON — Even after the Supreme Court declared President Donald Trump's "reciprocal" tariffs illegal on Friday, U.S. importers continue to foot the bill for duties on incoming goods, caught in a bureaucratic limbo as federal agencies scramble to implement the ruling.
The high court's decision struck down the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), a move that had escalated trade tensions with several countries. Yet, as cargo ships unload billions of dollars worth of products at American ports this weekend, businesses report no immediate relief from the financial burden. U.S. Customs and Border Protection (CBP) has not yet revised its electronic systems to eliminate the duties, leaving importers to file paperwork that includes the now-invalid tariffs just to clear their shipments.
According to a bulletin posted by CBP on Friday via its Cargo Systems Messaging Service (CSMS), the agency is "working with other government agencies to fully examine the implications of the SCOTUS decision." The notice added that CBP "will provide additional information and technical guidance for Automated Commercial Environment (ACE) filers as soon as it becomes available." A CBP spokesperson told CNBC that this remains the latest guidance for importers navigating the uncertainty.
The Automated Commercial Environment is the digital backbone for processing U.S. imports and exports, handling everything from declarations to payments in a paperless format. An executive order signed by Trump in March aimed to modernize these systems, but the ongoing delay highlights the challenges in swiftly adapting to major legal shifts. Without an update to the CSMS, which disseminates tariff changes and trade policies, importers must still include IEEPA tariff codes on their filings to secure the release of goods.
"Customs has not removed the requirement to report the IEEPA tariff codes in order to obtain a release of goods, so for cargo to continue moving, the IEEPA tariffs are still being reported on entries," said Lori Mullins, director of operations at Rogers & Brown Custom Brokers. "We are still anticipating a CSMS message confirming that a change to now accept entries without these tariffs, but as of now, that change has not been made, and Customs still requires them."
The scale of the disruption is staggering. Data from Vizion's Tradeview platform shows that an estimated 211,000 containers of goods, valued at approximately $8.2 billion, arrived at U.S. ports between Friday and Sunday. These shipments span everything from electronics and machinery to consumer products, underscoring the immediate economic stakes for businesses reliant on global supply chains.
Importers have a brief grace period to manage the payments. Mullins explained that there's a 10-day window following cargo release to settle duties. "No money is actually being transferred until day 10, so Custom entry summaries can be amended up until 9 days after cargo release, before the payment must be paid on day 10," she said. "After that, you'd be required to post payment and then file a post summary correction for a refund."
This process raises questions about how CBP will treat entries filed over the past 10 days, especially as payments come due next week. Trade experts anticipate a wave of amendments, but the logistics could bog down the system. "It'll likely take Customs some time to reconfigure their system to reflect the Court's ruling," said Michael Lowell, partner and chair of the Global Regulatory Enforcement Group at law firm Reed Smith. "So, this weekend importers file paperwork with the tariff on there, and then when Customs updates their system, the importer files a post summary correction (before payment), removing the tariff. The goods then come in this weekend without the tariff."
Lowell cautioned, however, that the sheer volume of corrections could lead to significant delays. "Corrections usually take within a couple of weeks, up to 30 days," he said. "However, we may see some delays given the scale of the issue this weekend." For smaller importers without robust legal teams, these holdups could strain cash flow and operations, particularly in industries already battered by years of trade volatility.
The tariffs in question stemmed from Trump's 2018-2019 trade war initiatives, where he invoked IEEPA to impose duties on imports from nations like China, the European Union, and others, framing them as reciprocal measures to counter unfair trade practices. The Supreme Court's ruling on Friday, in a case brought by affected importers and trade groups, deemed the use of IEEPA for these broad tariffs unconstitutional, marking a rare judicial check on presidential trade authority. The decision builds on prior challenges, including those before the U.S. Court of International Trade (CIT), but leaves open the fate of previously collected duties.
Beyond the immediate payment hurdles, a larger cloud hangs over potential refunds. The Supreme Court did not address restitution in its ruling, deferring that to lower courts. "This is the first time a tariff has been declared unconstitutional with this amount of money at stake," said Ben Bidwell, senior director for Customs at CH Robinson. "So there are still a lot of questions about whether the Court of International Trade will take steps opening the door for widespread refunds, for some companies to get some refunds or whether refunds are even on the table."
Trade attorneys and brokers agree that the CIT will likely handle refund claims, but the path forward is murky. In a customer Q&A distributed after the ruling, global logistics firm Kuehne + Nagel advised clients to prepare meticulously. "The CIT is expected to handle any refund mechanisms, but no timelines exist; high volumes of claims could create years-long delays," the company stated. This uncertainty has prompted some businesses to stockpile documentation, anticipating a flood of litigation that could stretch into the coming years.
The ruling arrives amid a broader reevaluation of U.S. trade policy under the current administration, which has sought to unwind some Trump-era measures while facing pressure from domestic industries to maintain protections. Importers from sectors like manufacturing and agriculture, who bore the brunt of the tariffs, hailed the decision as a victory for fair trade. Yet, without swift action from CBP and clarity on refunds, the economic relief remains theoretical for many.
As federal agencies deliberate, the weekend's influx of cargo serves as a stark reminder of the interconnectedness of global commerce. Ports from Los Angeles to New York buzzed with activity, their cranes unloading containers oblivious to the legal drama unfolding in Washington. For now, importers are left to navigate the gap between the court's gavel and the port's gates, paying duties that may soon be deemed null while hoping for eventual reimbursement.
Looking ahead, trade watchers expect CBP to issue updated guidance within days, potentially averting a full-scale backlog. But the refund saga could define the ruling's legacy, testing the judiciary's role in untangling executive overreach. Until the CIT weighs in, businesses will continue to operate in a state of cautious limbo, their ledgers marked by tariffs that the Supreme Court has already consigned to history.