The U.S. Court of International Trade permanently blocked former President Donald Trump’s universal “reciprocal” tariffs on global imports, citing misuse of the International Emergency Economic Powers Act.
This ruling curtails the macroeconomic uncertainty surrounding global trade policies, with indirect effects on market risk sentiments but no measurable impacts on cryptocurrencies.
Court Rules IEEPA Limits Tariff Powers
In April 2025, Donald Trump enacted “reciprocal” tariffs affecting over 180 countries. These measures came under legal scrutiny, resulting in a U.S. court ruling stating that the IEEPA does not authorize such broad duties.
The decision involved Trump’s historical use of tariffs as a trade tool, similar to practices during his presidency. Legal action highlighted tensions between presidential powers and statutory limitations. The ruling halts these tariffs permanently.
“The International Emergency Economic Powers Act, which Trump invoked to impose the tariffs, does not authorize a president to levy universal duties on imports. The separate tariffs on Canada, Mexico, and China related to drug trafficking also ‘fail because they do not deal with the threats set forth in those orders,’ the panel wrote, and ordered a permanent halt to the tariffs at issue in the case.” Source
Market Uncertainty Eases Amid Trade Ruling
The ruling provides clarity in global trade, halting the uncertainty caused by potential tariffs. Market reactions include global financial players reassessing risk, though no direct linkage to cryptocurrencies has been reported to date.
Historically, global trade policies influence financial markets broadly, affecting sentiment in risk assets, including cryptocurrencies. However, the decision’s emphasis primarily lies with traditional imports and economic relationships rather than digital assets.
Tariff Comparisons with U.S.-China Trade Actions
Trump’s initiative echoed past actions like the U.S.-China trade war, which affected market sentiments significantly. Comparatively, these universal tariffs would have introduced larger economic complexities.
Expert insights from Kanalcoin suggest potential market volatility in line with historical trends. Policies often lead to increased crypto trading as an alternative in periods of macroeconomic uncertainty. Yet, no direct evidence links this event to crypto volatility.
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