The Supreme Court struck down Donald Trump's use of emergency powers to impose tariffs on February 20, 2026, in a 6-3 ruling authored by Chief Justice John Roberts.
The court held that the International Emergency Economic Powers Act (IEEPA) does not grant the president authority to set tariffs, a power reserved for Congress under Article I of the Constitution.
Within hours, Trump responded by invoking Section 122 of the Trade Act of 1974 to impose a 10% global tariff, which he increased to 15% the next day. These tariffs can remain in place for up to 150 days without congressional approval.
Bitcoin reacted sharply to these moves. Prices jumped about 1.7% immediately after the Supreme Court ruling, reaching nearly $68,000 as traders anticipated less uncertainty in trade policies. However, when Trump announced the new tariffs, Bitcoin reversed gains, demonstrating the market's sensitivity to trade tensions.
The legal distinction matters: the IEEPA tariffs had no expiration, but Section 122 tariffs automatically expire after 150 days unless Congress acts, pressuring the administration to seek legislative backing or alternative legal avenues within months.
For investors, the defined timeline offers a clearer risk window compared to the open-ended emergency tariffs. Watching congressional interest in extending or modifying these tariffs will be key since permanent tariff legislation could dampen risk assets broadly.
