The U.S. Supreme Court on Friday delivered a landmark ruling, voting 6-3 to strike down President Donald Trump's global tariff regime. The court determined that Trump exceeded his authority by imposing broad import duties under the International Emergency Economic Powers Act (IEEPA), a 1977 law historically used to sanction foreign adversaries during crises. The tariffs, which Trump justified by citing persistent trade deficits and national security concerns including fentanyl trafficking, ranged from 10% to 50% on imports from nearly every major trading partner.
Court Ruling: Tariff Power Belongs to Congress
Chief Justice John Roberts wrote for the majority: "The Framers did not vest any part of the taxing power in the Executive Branch." He added that no previous president had used the statute to impose tariffs "of this magnitude and scope." The ruling emphasized that Article I of the Constitution assigns tariff authority to Congress. This was the first major test of Trump's second-term economic agenda before the high court, which includes three justices he appointed during his first term. Lower courts had already found that the administration overstepped. President Trump said he has a backup plan to pursue tariffs following the court ruling.
Bitcoin Rallies on the News
Financial markets reacted swiftly and with mixed signals. Bitcoin rose about 2% within minutes of the decision, briefly climbing above $68,000 before retreating toward $67,500. The move reflected a familiar pattern in digital asset markets, where headline-driven rallies have struggled to hold. For some investors, the invalidation of tariffs removes a source of policy uncertainty that had weighed on global trade. For others, it introduces new questions about fiscal gaps, refund obligations, and next steps from the White House.
Reuters reported that more than $133 billion in tariff revenue collected under the emergency authority could be subject to refunds. Trump has said his broader tariff program generated roughly $600 billion, though that figure has been disputed. If significant sums must be repaid, Treasury financing needs could shift at a delicate moment for bond markets.
Earlier Friday, economic data painted a complicated picture. The Commerce Department reported that the U.S. economy grew at a 1.4% annualized rate in the final quarter of 2025. Core personal consumption expenditures—the Federal Reserve's preferred inflation gauge—rose 3% year over year, above expectations. Annual growth for 2025 slowed to 2.2%, the weakest pace since 2020. Art Hogan, chief market strategist at B. Riley Wealth, described the data as sending a "messy message" of firmer inflation alongside cooling growth. That backdrop has reinforced expectations that the Federal Reserve will proceed with caution on rate cuts.
Is This Ruling Good for Bitcoin?
For Bitcoin traders, the tariff case has been less about trade flows than about liquidity and risk appetite. During prior episodes of trade escalation, digital assets tended to move in tandem with equities as investors reassessed growth and inflation risks. A court decision that removes tariffs could ease cost pressures over time, yet the near-term effect hinges on how Washington fills any fiscal hole.
Stephen Coltman, head of macro at 21Shares, said before the ruling that a negative outcome for the administration could pressure the dollar and Treasuries while favoring stocks and bitcoin. Others, including VanEck's Matthew Sigel, have argued that reduced tariff revenue could widen deficits, increasing the appeal of assets like bitcoin viewed as hedges against currency debasement.
Online prediction markets had assigned high odds to the court striking down the tariffs, suggesting traders were prepared for the headline. For now, the court's decision narrows presidential authority over tariffs and returns leverage to Congress. Whether lawmakers move to codify elements of Trump's trade agenda or chart a different course remains unclear. Bitcoin is trading near $67,600.