The Supreme Court of the United States has delivered a landmark ruling that invalidates former President Donald Trump’s global tariff policy, declaring that he exceeded his authority by imposing wide-ranging import duties under a law intended for national emergencies. The court ruled 6-3 against the tariffs imposed in early 2025 under the International Emergency Economic Powers Act, a legislation that allows for sanctions against foreign adversaries during crises but has never been used in such an extensive manner.
Trump’s justification for these tariffs, which ranged from 10% to 50% on imports from nearly every major trading partner, cited ongoing trade deficits and national security issues, particularly concerning fentanyl trafficking. However, Chief Justice John Roberts, writing for the majority, highlighted that the Constitution clearly designates taxing authority to Congress, with no provision for such expansive powers to the Executive Branch. This ruling, he noted, marks a significant and unprecedented moment in U.S. legal history, as no prior president has utilized this statute to impose tariffs to such an extent.
With the decision, lower courts had already illustrated that Trump’s administration had overstepped its authority, emphasizing that Article I of the Constitution vests tariff authority exclusively in Congress. Following the ruling, Trump mentioned having alternative plans to pursue tariffs, signaling ongoing tensions regarding trade policy.
Financial markets quickly reacted to the decision, with Bitcoin initially rising about 2%, surpassing $68,000 before settling around $67,500. This movement reflects a broader pattern in digital asset trading where price fluctuations frequently follow significant headlines. The ruling brings forth a mixture of reactions; while it alleviates some uncertainty regarding global trade policies, it raises new questions about fiscal implications and potential refunds on tariff revenues.
Reports indicate that more than $133 billion collected in tariff revenue under the emergency provisions could now be subjected to refunds, complicating Treasury financing at a sensitive time for bond markets. Trump’s broader tariff initiative claimed to have generated nearly $600 billion, although this figure remains disputed. The implications of potential repayments could significantly impact financial structures, particularly as the economy grapples with slower growth and higher inflation rates. Just prior to the ruling, the Commerce Department’s data revealed a 1.4% growth rate in the U.S. economy for the final quarter of 2025, with annual growth dipping to 2.2%, the lowest since 2020.
Art Hogan of B. Riley Wealth noted the economic signals appeared mixed, with rising inflation and cooling growth complicating factors for Federal Reserve monetary policy. Following the ruling, Bitcoin traders viewed the tariff case less as a direct measure of global trade impacts and more in terms of liquidity and risk appetite. Previous trade escalations had seen digital assets moving in line with equities, as investor sentiment fluctuated with growth and inflation risks.
Market analysts like Stephen Coltman suggested that the ruling could exert pressure on the dollar and Treasuries while benefiting stocks and Bitcoin. In contrast, financial experts such as Matthew Sigel of VanEck highlighted that diminished tariff revenues might exacerbate deficits, consequently increasing the attractiveness of assets like Bitcoin as protection against currency devaluation. Observations from online prediction markets indicated that traders had largely anticipated the court’s decision, suggesting a preparedness for its outcome.
Overall, this ruling effectively reduces presidential power over tariff imposition, transferring more legislative control back to Congress. The subsequent actions from lawmakers—whether they choose to solidify elements of Trump’s trade policies or pursue alternative strategies—remain uncertain. Presently, Bitcoin is trading near $67,600 as market participants continue to assess the implications of this pivotal decision.
