Trump’s New 10% Global Tariff Draws Broad‑Scale Criticism Amid Mixed Crypto Reaction
Washington, D.C., Feb. 21 — President Donald Trump announced on Friday an additional 10 percent tariff that will be layered on top of existing duties under Sections 232 and 301. The move comes just hours after the U.S. Supreme Court curtailed the administration’s authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). Lawmakers, policy analysts and legal experts have quickly voiced opposition, while the cryptocurrency market displayed a comparatively muted response.
The announcement and the legal backdrop
In a statement posted to the White House’s official X account, the president declared that all “national‑security tariffs” remain in effect and that a new executive order would impose a blanket 10 percent tariff worldwide, effective immediately. The order references the same statutory provisions that the Supreme Court just invalidated in a separate case, which determined that the administration had overstepped the limits of IEEPA when targeting certain imports.
Legal commentators note that the statutes cited by the White House are narrowly scoped. Pro‑crypto attorney Adam Cochran explained that the law only permits such measures against nations with which the United States runs a trade deficit, that the measures are limited to a 150‑day window and that the percentage of the tariff is capped. He warned that the president’s order may therefore exceed the legal authority granted by the statutes.
Political backlash
Members of Congress from both parties condemned the tariff escalation. Senator Rand Paul characterized the policy as a “tax on working families and small businesses,” arguing that it would depress consumer spending and hurt the broader economy. Representative Ro Khanna echoed the sentiment, describing the tariffs as a fiscal burden designed to finance an “irresponsible trade war” rather than a genuine security measure.
Think‑tank analysts were equally critical. Scott Lincicome, vice president of the Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies, warned that even without the IEEPA authority, other U.S. statutes and repeated administrative promises could cement higher tariff levels as the new normal, potentially straining diplomatic ties and undermining economic growth.
Crypto markets under the new tariffs
Historically, Trump‑initiated tariffs have dragged down risk‑on assets, including various cryptocurrencies. In this instance, the impact was far less pronounced. Bitcoin rallied roughly 3 percent in the hours following the announcement, while the Total3 index—a metric that tracks the market capitalisation of all crypto assets except Bitcoin and Ether—barely budged. The relative stability suggests that market participants may have already priced in the risk of heightened trade tensions, or that the broader macro‑economic implications of the tariff are still being assessed.
Analysis
The rapid rollout of the 10 percent global tariff raises several questions for investors and policymakers alike:
- Legal exposure: The Supreme Court’s recent decision highlights the contested nature of the administration’s tariff authority. If the new order is found to exceed statutory limits, the government could face further judicial challenges that might delay or overturn the measures.
- Economic cost‑benefit: Critics argue that the tariffs act as a de‑facto tax on American consumers and businesses, potentially reducing purchasing power and eroding competitiveness. Proponents claim they protect national security interests, though the evidence of such benefits remains unclear.
- Crypto resilience: The modest price movement in major cryptocurrencies indicates that the sector may be decoupling, to some extent, from traditional trade‑policy shocks. Nonetheless, prolonged tariff escalations could affect mining equipment supply chains and broader investor sentiment.
Key takeaways
- Supreme Court ruling: The Court struck down the administration’s use of IEEPA, prompting the president to issue a new 10 % global tariff order.
- Political opposition: Senators and representatives across the aisle, as well as policy institutes, denounce the tariffs as an undue burden on families and businesses.
- Legal limits: Experts note that the statutes cited by the White House allow tariffs only under specific deficit‑related conditions and for a limited duration.
- Crypto market reaction: Bitcoin posted a modest gain of about 3 %; the broader crypto market remained largely unchanged, suggesting limited immediate impact.
- Potential fallout: Ongoing legal challenges and the economic drag of higher import costs could create volatility for both traditional and digital asset markets.
The tariff saga underscores the intersection of trade policy, domestic politics and the evolving cryptocurrency landscape. Market participants will be watching closely for further legal developments and any subsequent shifts in the administration’s trade strategy.
Source: https://cointelegraph.com/news/us-lawmakers-critical-tariffs-derail-economy?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
