Trump Signs New 10% Global Tariff After Supreme Court Setback – What It Means for Bitcoin
By CryptoPotato News Desk – July 2024
Washington — In a surprising move on Friday, President Donald Trump signed a temporary 10 % tariff on imports from virtually every country, invoking the little‑used Section 122 of the Trade Expansion Act. The action comes just hours after the U.S. Supreme Court issued a 6‑3 decision rejecting Trump’s earlier attempt to impose sweeping duties under the International Emergency Economic Powers Act (IEEPA).
The new levy is slated to last for 150 days, after which Congress would be required to review and either extend or terminate it. Legal scholars note that Section 122 does not explicitly bar the president from allowing the expiration period to lapse and then re‑declaring an emergency, a loophole that could enable a series of rolling tariffs.
Background: From IEEPA to Section 122
- Supreme Court ruling – The Court’s opinion limited the President’s authority to use the 1977 IEEPA to levy taxes on imports, effectively nullifying the tariffs that had already been collected under that statute.
- Refund dilemma – The decision left open the question of how to reimburse the roughly $130 billion paid by importers, a process Treasury Secretary Janet Yellen warned could take years.
- Remaining duties – Tariffs imposed under Section 232 of the Trade Expansion Act—targeting steel, aluminum, lumber and automobiles—remain untouched.
Bitcoin’s Immediate Reaction
When the news broke, Bitcoin (BTC) held steady around the $68,000 mark, showing resilience that contrasts with the sharp declines seen during previous tariff escalations in February and April 2023, as well as the “Greenland saga” earlier this year. Nonetheless, analysts caution that price stability may be fleeting once global markets fully digest the policy shift.
“Historically, broad‑based tariff announcements have sparked heightened volatility in crypto markets, especially when they coincide with broader risk‑off sentiment in equities and commodities,” said Maya Patel, senior market strategist at CryptoInsights.
Why Traders Are Watching the Market Closely
- Historical precedent – Bitcoin and major altcoins have slumped markedly each time the Trump administration announced or threatened expansive trade barriers.
- Liquidity pressure – Large‑scale tariffs can strain global supply chains, prompting margin calls and forced liquidations among leveraged crypto positions.
- Currency dynamics – A stronger dollar, often a by‑product of protectionist measures, can dampen demand for non‑sovereign assets like BTC.
Potential Scenarios
| Scenario | Likelihood | Impact on BTC |
|---|---|---|
| Tariff expires after 150 days, no renewal | Moderate | Limited upside; market may view the move as a temporary shock, preserving current price levels. |
| President declares a new emergency and re‑imposes tariffs | High (given past behavior) | Renewed bearish pressure, possible 10‑15 % correction within weeks. |
| Congress steps in and rolls back tariffs | Low to Moderate | Positive sentiment, potential rally if investors interpret it as a de‑escalation of trade tensions. |
Key Takeaways
- Policy shift, not a court‑mandated reversal – Trump’s new tariff bypasses the Supreme Court’s limitation on IEEPA, leveraging a different statutory authority that can be renewed without legislative approval.
- Bitcoin is holding for now – The cryptocurrency remains near $68 k, but the underlying risk of a sudden market‑wide sell‑off persists.
- Watch the 150‑day clock – The expiry date will be a focal point for both policymakers and traders; any move to extend or replace the tariff could reignite volatility.
- Broader market implications – If the tariffs trigger a sharp U.S. dollar rally or a global equity downturn, crypto assets are likely to feel the spill‑over effects.
Investors should monitor statements from the White House, Treasury, and congressional committees over the coming weeks, while maintaining prudent risk‑management practices amid an environment where trade policy can quickly reshape market sentiment.
For continuous updates on how macroeconomic developments affect crypto markets, stay tuned to CryptoPotato.
Source: https://cryptopotato.com/trump-signs-new-10-global-tariff-despite-supreme-court-defeat-will-btc-crash-again/
