Trump Tariff Litigation: Supreme Court Reverses Authority, Crypto Market Reacts

Not yet noon on February 20, Bitcoin suddenly jumped from around $66,500 to break through $67,800, while Ethereum touched around $1,960 and XRP accelerated to $1.43. This sharp movement was no coincidence— the crypto market was reacting to a landmark ruling recently issued by the U.S. Supreme Court in a major litigation regarding President Trump’s tariff powers. However, this momentum did not continue. By the afternoon, Bitcoin fell to $66.13K, down 3.07% over 24 hours; Ethereum dropped to $1.96K (-4.86%), and XRP returned to $1.38 (-3.89%). This volatility reflects mixed market sentiment: optimism about legal limits on Trump’s executive powers, but concern over upcoming policy agendas.

Origins of the Litigation: How Trump’s Trade War Became a Major Legal Case

The litigation bringing this case to the Supreme Court began with Trump’s bold move on April 2 last year. At that time, the president announced what he called “Freedom Day,” imposing broad tariffs—25% on imports from Canada and Mexico, dozens of percent on Chinese products, and “retaliation tariffs” on nearly all countries—without consulting Congress. The Trump administration argued that the trade deficit was a national emergency, granting the president authority to use the International Emergency Economic Powers Act (IEEPA), a 1977 regulation originally designed to address security crises, not ordinary trade.

This move was quickly challenged by several large companies and 12 Democratic-leaning states, which sued the president. They questioned: does the president truly have the legal authority to do this? This is the core of the litigation that eventually reached the Supreme Court.

Historic Ruling: Supreme Court Questions Presidential Authority

On the morning of February 20, the Supreme Court issued its much-anticipated decision. In a 6-3 ruling, the justices concluded that President Trump exceeded his authority. Chief Justice John Roberts wrote in the official opinion: “We conclude that IEEPA does not grant the president the authority to impose tariffs.”

This decision was very specific in scope. It invalidated all tariffs imposed under IEEPA, including:

• 25% tariffs on most Canadian imports
• 25% tariffs on most Mexican imports
• 10% or higher tariffs on many Chinese imports
• “Retaliation” tariffs of 10% or more on all countries

However, this ruling does not eliminate tariffs imposed under other regulations such as Section 301, Section 232, and other trade laws—meaning tariffs on China of 7.5-25%, steel tariffs at 25%, and aluminum tariffs at 10% remain in effect. In other words, the litigation created a complex situation: some tariffs are invalidated, others remain.

Trump Rejects the Ruling: ‘Court Influenced by Foreign Interests’

Trump’s reaction was swift and angry. The president called the Supreme Court decision “very disappointing” and expressed shame toward “certain members of the court.” He went further, accusing the court of being “influenced by foreign interests.”

In his statement, Trump argued that the decision was absurd—he claimed he could impose a total embargo that would devastate other countries’ economies, but he cannot impose a tariff. “Foreign countries are happy with this decision, but they won’t be dancing for long,” Trump said, hinting at a next step being planned.

The president then cited other laws still in his possession— the 1962 Trade Expansion Act, the 1974 Trade Act, and the 1930 Tariff Act—as evidence that he still has legal tools to pursue his tariff agenda.

Even before this decision was announced, Trump hinted that he would “take action against” the Supreme Court itself.

Crypto Community Perspective: Is This a Win for Checks and Balances?

Billy Markus, known as the co-creator of Dogecoin (DOGE), took the opportunity to criticize the Trump administration. In a tweet on February 20, Markus called the administration “incompetent” and suggested that “checks and balances should be allowed to work rather than constantly trying to do whatever they want at any time.”

This comment reflects broader concerns within the crypto community and markets about the concentration of executive power and what it means for long-term policy.

Bitcoin, Ethereum, XRP: Short-term Surge and Market Reality

Initial crypto market reactions suggested brief optimism. But the volatility revealed the situation’s complexity:

Bitcoin surged from $66,500 to $67,800 on the news, but soon dropped to $66.13K by the end of the day, down 3.07% over 24 hours. Ethereum, which initially jumped from $1,930 to $1,960, is now trading at $1.96K with a 24-hour decline of 4.86%. XRP rose from $1.38 to $1.43 but then fell back to $1.38, with a 24-hour decrease of 3.89%.

None of these assets managed to sustain their initial momentum, indicating that the market remains uncertain about the long-term implications of the Supreme Court decision.

What’s Next? Litigation and New Policies

Yaroslav Pritra, a director at CEX.IO, offered a prudent perspective. In a statement sent to media, Pritra said that the ruling invalidating tariff authority will likely be viewed positively for crypto—at least initially. But he also warned that the Trump administration could craft entirely new laws to pursue their tariff agenda, as warned by Treasury Secretary Scott Bessent in December.

In other words: this litigation may have just ended one chapter, but the legal and policy battles over tariffs—and their impact on crypto assets and the global economy—are far from over. The crypto market remains caught between hopes for limiting executive power and fears of creative next steps from an administration clearly not ready to give up this litigation.