Trump Tariff Litigation Rejected by Supreme Court: Impact on the Crypto Market and Presidential Response

A highly anticipated lawsuit regarding President Donald Trump’s tariff authority has finally found an answer. On February 20th, the U.S. Supreme Court released a decision that shook up the government’s trade policy by rejecting the president’s authority to unilaterally impose tariffs under the International Emergency Economic Powers Act (IEEPA).

Litigation Story: How Business and State Lawsuits Challenge Tariff Authority

The litigation journey began last April when Trump launched a global tariff war he called “Liberation Day.” Without consulting Congress, the administration based its actions on IEEPA—a 1977 law designed for national emergencies—claiming that the trade deficit was a crisis requiring swift intervention.

However, this move was quickly challenged. Several major companies and 12 U.S. states, mostly controlled by the Democratic Party, filed a lawsuit with the Supreme Court to challenge the legal foundation of the tariff policy. The process lasted months, with the central question: does the president truly have the authority to use IEEPA to impose large-scale tariffs?

Supreme Court Decision: IEEPA Tariffs Overturned, Other Tariffs Remain in Effect

In a 6-3 vote, the justices ruled that Trump exceeded his authority. “We conclude that IEEPA does not grant the president the authority to impose tariffs,” wrote Chief Justice John Roberts in the historic decision.

The court specifically invalidated tariffs imposed through IEEPA, including:

• 25% tariffs on most imports from Canada
• 25% tariffs on most imports from Mexico
• 10% and higher tariffs on many Chinese imports
• 10% and subsequent “reciprocal” tariffs on all countries

However, this decision did not affect tariffs imposed through other legal mechanisms, such as Section 301, Section 232, and other historic trade laws. This means the following tariffs remain in effect:

• 7.5%-25% tariffs on Chinese imports
• 25% steel tariffs
• 10% aluminum tariffs

Trump’s Criticism and Next Strategies

Dismissing the decision as “very disappointing,” Trump expressed shame toward “certain members of the court” and even accused the judiciary of being “influenced by foreign interests.” He called it “ridiculous” that he can now impose embargoes on countries but cannot simply impose a dollar in tariffs.

The president emphasized that tariffs have provided strong national security benefits and that he has other legal tools at his disposal. Trump cited the 1962 Trade Expansion Act, the 1974 Trade Act, and the 1930 Tariff Act as alternative legal avenues to continue his tariff agenda.

Crypto and Market Response: An Unsustainable Surge

The crypto sector initially responded to the court ruling with optimism. Bitcoin (BTC) jumped from around $66,500 to $67,800, while Ethereum (ETH) moved from $1,930 to $1,960, and XRP increased from $1.38 to $1.43.

However, the bullish momentum did not last long. By the end of the day, price movements slowed significantly. According to the latest market data as of February 28, Bitcoin traded at $63,340, Ethereum dropped to $1,850, and XRP was at $1.30—showing a correction from early-day peak levels.

Yaroslav Pritra, a fractional director at CEX.IO, explained to TheStreet Roundtable that the court’s decision to reject Trump’s tariff authority might initially be seen as positive for crypto. However, he also warned that the government could pass alternative trade laws to pursue its tariff agenda, as hinted by U.S. Treasury Secretary Scott Bessent a few months earlier.

Billy Markus, co-creator of Dogecoin (DOGE), offered a more critical comment, calling the administration “incompetent” and emphasizing the importance of “letting checks and balances work properly rather than just trying to do whatever you want all the time.”

This tariff litigation marks a significant legal battle between the executive and judicial branches, with long-term implications for global trade policy and financial market stability.