On Friday, the US Supreme Court ruled against President Trump’s tariffs, indicating that he could not use a 1977 law – the International Emergency Economic Powers Act (IEEPA) – to levy taxes on imports from almost all countries.
Trump’s reaction was immediate, calling the ruling a disgrace and threatening to take even more actions. He did so hours later, announcing a new 10% temporary tariff on goods from all countries under a law that was never used before, known as Section 122.
It allows him to impose tariffs of up to 15% for 150 days before Congress steps in. However, experts have warned that Trump could once again work around the law, as Section 122 does not expressly prohibit him from allowing the tariffs to lapse after 150 days and then declaring a new emergency to bring them back.
It’s worth noting that the Friday court ruling applies only to tariffs that Trump had enacted under the IEEPA. This allows the President to regulate trade in response to an emergency. Additionally, tariffs imposed under Section 232 of the Trade Expansion Act of 1962 will remain, including those on steel, aluminium, lumber, and automotives.
In its 6-3 ruling on Friday, the Supreme Court failed to address or provide guidance on returning the money to the affected parties that paid the taxes, worth around $130 billion. Treasury Secretary Bessent said after the decision was announced that the refund issue could drag on for years.
For now, perhaps the most important question for crypto investors is whether these latest developments will lead to another crash in the market.
Recall that BTC and the alts plunged in February and April last year when Trump hit essentially every country with tariffs. More corrections took place a few months ago when he only threatened the EU with additional taxation during the Greenland saga.
So far, bitcoin has remained relatively stable, trading around $68,000. However, it appeared stable after the threats against the EU but plummeted once all financial markets opened on that Monday morning.
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