Trump Slaps Tariffs Under Section 122 Amid Trade War Uncertainty
The Supreme Court's recent ruling in Learning Resources, Inc. v. Trump has led to a fresh round of trade tensions after President Trump invoked Section 122 of the Trade Act of 1974 to impose new tariffs on imports.
The court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs unilaterally, effectively limiting executive authority in this area. Trump's team moved quickly to implement a new tariff plan under Section 122, imposing an initial 10% global tariff and raising it to 15% within a day.
The tariffs can last up to 150 days without Congressional approval, but will automatically expire after that period unless Congress passes legislation to extend them. This creates a defined period of uncertainty for traders, who must now watch for potential Congressional action or international retaliation.
In the short term, Bitcoin's price surged by roughly 1.7% following the Supreme Court ruling, only to reverse course and drop its gains when Trump announced the new tariffs under Section 122.