Trump Pushes Back on Supreme Court Decision, Unveils 10 % Global Tariff
Washington, D.C., Feb. 21 — The administration of former President Donald Trump responded on Friday to a U.S. Supreme Court ruling that barred the use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs during peacetime. In a live press briefing, Trump announced a new 10 % tariff that will be applied worldwide, citing alternative statutory authorities.
Court’s Ruling
On Friday, the Supreme Court issued an opinion dismissing the executive branch’s claim that IEEPA grants the president authority to levy tariffs in the absence of a declared war or national emergency. The Court emphasized that the Constitution assigns the power to impose duties and taxes to Congress, and that no president in the law’s more than 50‑year history has used IEEPA to enact tariffs of the scale proposed by the administration.
Administration’s Countermeasure
Undeterred, Trump declared that the tariff will be enacted under the Trade Expansion Act of 1962 and the Trade Act of 1974—legal frameworks that historically give the president latitude to address “unfair” foreign trade practices. In his remarks, Trump said the order would take effect immediately and would sit “over and above” existing tariffs imposed under Section 232 (national‑security) and Section 301 (intellectual‑property and technology theft) of the Trade Act.
“Effective immediately, all national‑security tariffs remain in full force. Today I will sign an order imposing a 10 % global tariff under Section 122, on top of the duties already in place,” Trump said during the broadcast.
Market Reaction
The announcement arrived amid heightened volatility in risk‑on assets. Crypto markets, already sensitive to policy shifts, recorded a modest dip in Bitcoin and major altcoins within the hour after the briefing. Equity indices with exposure to import‑heavy sectors, such as automotive and consumer electronics, also fell, reflecting investor concerns over higher input costs and potential supply‑chain disruptions.
Analysts note that while tariffs have historically triggered short‑term price pressure, the longer‑term impact on the cryptocurrency ecosystem is less clear. “Higher tariffs can drive inflation expectations, which in turn may boost demand for non‑sovereign stores of value like Bitcoin,” said Evelyn Cheng, senior economist at CryptoMetrics. “Conversely, the added cost pressure on manufacturers could dampen spending on digital assets.”
Legal and Policy Implications
The administration’s reliance on Section 122 of the Trade Expansion Act raises several questions:
- Scope of Authority – Section 122 allows the president to impose duties to protect U.S. commerce, but its use for a blanket “global” tariff could be contested in court.
- Congressional Oversight – If the tariff is challenged, Congress may be called upon to clarify or restrict the executive’s trade powers.
- International Response – Trading partners could view the measure as protectionist, potentially triggering retaliatory actions under World Trade Organization (WTO) rules.
Key Takeaways
- Supreme Court limits the use of IEEPA for peacetime tariffs, reaffirming congressional primacy over taxation.
- Trump’s administration pivots to the Trade Expansion Act and the Trade Act of 1974 to implement a 10 % global tariff.
- Financial markets react with short‑term declines in risk assets, including cryptocurrencies, as trade‑cost concerns rise.
- Legal challenges are likely, as the breadth of the new tariff may test the limits of existing trade statutes.
- Potential for retaliation exists, with affected countries possibly seeking WTO dispute settlements or imposing counter‑tariffs.
The coming weeks will reveal how courts, Congress, and international partners respond to the new tariff order, and what implications it will have for global trade flows and the broader digital‑asset landscape.
Source: https://cointelegraph.com/news/trump-10-global-tariff-scotus-ruling?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
