Trump Announces 10% Global Tariff After Supreme Court Blocks Emergency Powers

TLDR

• The U.S. Supreme Court ruled Trump cannot use emergency powers (IEEPA) to impose tariffs during peacetime
• Trump responded by announcing a new 10% global tariff under Section 122 of the Trade Act of 1974
• Existing tariffs under Section 232 and Section 301 remain in place immediately
• Bitcoin rose slightly to around $67,700 following the announcement, showing resilience
• Trump said refunding roughly $175 billion in collected tariff revenue is unlikely without litigation

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The U.S. Supreme Court ruled on Friday that President Donald Trump does not have the authority to impose tariffs using the International Emergency Economic Powers Act (IEEPA) during peacetime.

The court stated that no president in IEEPA’s 50-year history had ever used it to impose tariffs at this scale.

The ruling pointed to the U.S. Constitution, which gives Congress, not the president, the power to levy taxes and duties.

Trump had used the IEEPA to place a 25% tariff on goods from Canada and Mexico, and a 10% tariff on Chinese imports, citing drug trafficking and trade deficits as national security threats.

The Supreme Court rejected both of those arguments as valid grounds under the IEEPA.

He then said he would use other legal tools to continue imposing tariffs, including the Trade Expansion Act of 1962 and the Trade Act of 1974.

Trump’s New Tariff Plan

Trump announced he would sign an executive order imposing a 10% global tariff under Section 122 of the Trade Act of 1974, effective within three days.

He confirmed that all existing national security tariffs under Section 232 and Section 301 would stay in place immediately, regardless of the court’s ruling.

Trump also said the U.S. would begin new trade investigations under Section 301 to address what he called unfair trading practices by other countries.

He noted that Section 122 tariffs last for five months, but can be extended with approval from Congress.

Trump also clarified that the court did not strike down all tariffs — only the specific use of IEEPA to impose them.

Bitcoin and Market Reaction

Bitcoin did not drop following the announcement. According to TradingView data, BTC was trading around $67,700 on Friday, up slightly on the day.

Bitcoin had climbed from around $67,000 after Trump made his tariff announcement, showing that markets did not react negatively in the short term.

Trump’s tariff policies have historically caused volatility in risk assets, including both crypto and equities.

On the question of refunds, Trump said it is unlikely the government would return the roughly $175 billion collected in tariff revenue.

He said any refund would likely require litigation and could take up to five years to resolve.

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