"The case centers on tariffs imposed in early 2025 under the International Emergency Economic Powers Act, a 1977 statute typically used for sanctions during national emergencies. Trump used the law to justify "Liberation Day" tariffs ranging from 10% to 50% on global imports, alongside targeted duties on China, Canada, and Mexico tied to fentanyl trafficking concerns. His administration argued that persistent trade deficits and national security risks met the threshold for an emergency."
"If the tariffs are struck down, the financial implications could be large. Lower courts disagreed. Both the U.S. Court of International Trade and a federal appeals court ruled that Trump exceeded his authority, emphasizing that Congress holds primary power over tariffs. The Supreme Court heard arguments in November, with skepticism voiced across ideological lines. While the court does not preannounce decisions, it has signaled rulings could be released on Jan. 9."
"Trump has claimed the tariffs generated roughly $600 billion in revenue, a figure that has shaped market anxiety around refunds and Treasury financing. The ruling's impact on Bitcoin All traders are watching this situation closely, not because tariffs directly affect Bitcoin's network, but because macro shocks in all markets often ripple through risk assets. During prior trade escalations, Bitcoin tended to sell off alongside equities as liquidity tightened and risk appetite faded."
Bitcoin is trading near $90,000 after falling from above $92,000. Markets face a macro test ahead of a U.S. Supreme Court decision on the legality of tariffs imposed under the International Emergency Economic Powers Act in early 2025. The tariffs, labeled "Liberation Day," ranged from 10% to 50% and included targeted duties tied to fentanyl concerns. Lower courts ruled that the president exceeded authority and emphasized congressional power over tariffs. Reuters reported over $133.5 billion in duties could be subject to refunds, while the administration claimed roughly $600 billion in revenue. Macro shocks historically drive Bitcoin sell-offs alongside equities.
Read at Bitcoin Magazine
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