In a surprising move, President Donald Trump announced on Saturday that he is raising global tariffs from 10% to 15%, an action he declared as “effective immediately” through a post on Truth Social. This decision came just a day after the Supreme Court delivered a 6-3 ruling that struck down his previous initiatives, deeming his use of the International Emergency Economic Powers Act (IEEPA) to be unconstitutional.
Trump wasn’t shy in expressing his disdain for the ruling, which he called “ridiculous” and “poorly written,” highlighting his criticisms towards Justices Neil Gorsuch and Amy Coney Barrett, who sided with the majority. Rebelling against the court’s decision, Trump quickly pivoted to Section 122 of the Trade Act of 1974 and the Trade Expansion Act of 1962, which prescribes stringent limits on tariffs, maintaining the rate for only 150 days before requiring congressional approval.
As the new 15% tariff comes into effect, it has raised concerns among traders about the potential impact on global markets. Pro-crypto attorney Adam Cochran noted the limitations of this legal route, particularly emphasizing how it restricts tariffs to countries with which the U.S. has a trade deficit. This caveat suggests a ticking clock on the tariff’s longevity without new legislation in place.
How Are Crypto Markets Reacting?
Despite the looming uncertainty surrounding tariffs, the cryptocurrency market displayed remarkable resilience. Bitcoin, consistently holding its ground, was trading at approximately $68,000 during both the Friday and Saturday announcements. Meanwhile, Ethereum remained stable around $1,976, with both cryptocurrencies exhibiting a measured response amid the news.
Interestingly, the Total3 crypto market cap, which gauges the crypto ecosystem excluding Bitcoin and Ethereum, fell by less than 1% on Saturday, holding steady at around $713 billion. This behavior contrasts sharply with previous tariff announcements from Trump, which typically spurred heavy sell-offs across both crypto and stock sectors.
Looking Ahead: Tariffs and Market Reactions
The White House had initially planned to implement the original 10% tariffs starting on Tuesday, February 24, at 12:01 a.m. ET. However, the transition to a 15% rate complicates matters, as there’s no current confirmation regarding signed documents enforcing this increment.
Adding to the tension, Trump is set to deliver his State of the Union address to Congress this Tuesday, where the newly imposed tariffs and their legality are anticipated to be focal points of discussion. Investors and traders will be keeping a close eye on any developments or clarifications regarding these tariffs as they prepare for potential implications on both the manufacturing landscape and financial markets.
As of now, Bitcoin’s price hovers around $68,011 while Ethereum remains at $1,976, both standing ruggedly against shifts in policy, signaling a cautious optimism in crypto circles amid economic uncertainties.
As the upcoming weeks unfold, the intersection of trade policy and cryptocurrency will be watched with keen interest, potentially altering the landscape in ways we have yet to see.
