On Friday, the US Supreme Court ruled against President Trump’s imposition of tariffs, indicating he could not invoke the 1977 law – the International Emergency Economic Powers Act (IEEPA) – to raise taxes on imports from nearly all nations.

Trump’s immediate reaction was one of outrage as he labeled the ruling a disgrace. Just hours later, he announced a new temporary tariff of 10% on goods from every country under a previously unused law known as Section 122.

It permits him to enact tariffs of as much as 15% for a period of 150 days before Congressional oversight is required. Experts caution, however, that Trump could again maneuver around the regulations, as Section 122 does not explicitly forbid him from allowing the tariffs to expire after 150 days and subsequently declaring a new emergency to reinstate them.

It’s critical to note that the Court’s ruling, which featured a 6-3 vote, applies solely to tariffs enacted under the IEEPA, a law that enables the President to control trade in emergencies. Tariffs imposed under Section 232 of the Trade Expansion Act of 1962, affecting steel, aluminum, lumber, and automotive imports, will remain in effect.

In light of these developments, the significant question for cryptocurrency investors is whether such actions may trigger another downturn in the market. History suggests that when tariffs were previously enforced by Trump, Bitcoin and other cryptocurrencies faced severe price corrections. For instance, significant drops occurred in February and April last year after Trump enacted tariffs against almost every country, along with further corrections following his threats against Europe.

As of now, Bitcoin appears to remain stable, holding around $68,000. Nevertheless, its price remained steady after threats against the European Union but fell sharply once stock markets opened the following Monday.