šØ Trump announces 10% global tariff after SCOTUS strikes IEEPA authority, drawing criticism from lawmakers as "tax on families and small businesses" šØ
President Trump announced a new 10% global tariff on Friday after the US Supreme Court struck down his authority to levy tariffs under the International Emergency Economic Powers Act (IEEPA), immediately drawing critical reactions from US lawmakers and think tanks who characterize the tariffs as a net negative on the economy. Senator Rand Paul said the Trump tariffs are a tax increase on "working families and small businesses," while Congressperson Ro Khanna stated they are "a tax on families and small businesses to bankroll a reckless trade war." Trump announced the tariff will be imposed on top of already existing rates, with all national security tariffs under Section 232 and Section 301 remaining in place, though pro-crypto attorney Adam Cochran noted the legal statute Trump cited "only allows this to be on countries we have a deficit with, for a set period of 150 days, and at a capped percent." Despite Trump's tariffs typically having negative impacts on crypto markets, Bitcoin prices rose about 3% after the announcement and the Total3 crypto market cap indicator barely moved.
š Key points
š¹ SCOTUS strikes IEEPA authority: The US Supreme Court struck down Trump's authority to levy tariffs under the International Emergency Economic Powers Act on Friday; Trump responded immediately by announcing a new 10% global tariff using alternative legal statutes, with all existing Section 232 and Section 301 tariffs remaining in full force.
š¹ Bipartisan lawmaker criticism: Republican Senator Rand Paul and Democratic Congressperson Ro Khanna both characterized the tariffs as a tax increase on American families and small businesses; Khanna stated they are "a tax on families and small businesses to bankroll a reckless trade war" that provides no security benefit.
š¹ Limited legal scope: Pro-crypto attorney Adam Cochran noted that the legal statute Trump cited for the 10% global tariff "only allows this to be on countries we have a deficit with, for a set period of 150 days, and at a capped percent," suggesting the authority is more constrained than Trump's IEEPA powers.
š¹ Think tank opposition: Scott Lincicome, Vice President of the Cato Institute's trade policy center, warned that "even without IEEPA, other US laws and the Trump administration's repeated promises all but ensure that much higher tariffs will remain the norm, damaging the economy and foreign relations in the process."
š¹ Crypto markets resilient: Despite Trump's tariffs typically having negative impacts on risk-on assets including crypto, Bitcoin prices rose approximately 3% after the announcement and the Total3 indicator tracking total crypto market cap (excluding BTC and ETH) barely moved, suggesting markets have priced in tariff uncertainty or view crypto as a hedge.
š Why it matters
š¹ Executive authority circumvented SCOTUS: By immediately announcing a 10% global tariff using alternative legal statutes after SCOTUS struck down IEEPA authority, Trump demonstrated willingness to circumvent judicial constraints on executive power; if the 150-day limitation Cochran identified is accurate, Trump may cycle through temporary tariff authorities to maintain indefinite trade barriers.
š¹ Bipartisan tariff opposition emerges: The criticism from both libertarian Republicans like Rand Paul and progressive Democrats like Ro Khanna signals growing bipartisan opposition to tariffs as "taxes on American families"; this coalition could pressure Congress to reclaim tariff authority or pass legislation constraining executive trade powers.
š¹ Economic damage warnings ignored: The Cato Institute's warning that "much higher tariffs will remain the norm, damaging the economy and foreign relations" reflects consensus among trade economists that tariffs reduce growth, raise consumer prices, and provoke retaliation; Trump's dismissal of this criticism suggests economic damage is acceptable collateral for political or strategic goals.
š¹ Crypto as tariff hedge: Bitcoin's 3% rise and crypto market stability during a tariff announcement that typically tanks risk assets suggests investors may be viewing digital assets as a hedge against trade war uncertainty or dollar instability; if tariffs escalate and damage the economy, crypto could benefit from capital flight from traditional markets.
šÆ Bottom line: Trump circumvented the Supreme Court's IEEPA ruling by immediately announcing a 10% global tariff using alternative legal statutes, drawing bipartisan criticism that the tariffs are "taxes on families and small businesses" that will damage the economy. While pro-crypto attorney Adam Cochran noted the legal authority is limited to countries with trade deficits for 150 days at capped rates, the Cato Institute warns that Trump's "repeated promises" ensure "much higher tariffs will remain the norm" through cycling temporary authorities or invoking new statutes. Bitcoin's 3% rise and crypto market stability suggest digital assets may be decoupling from risk-on behavior and acting as a hedge against trade war uncertaintyāif tariffs escalate and damage the US economy, crypto could benefit from capital flight and dollar instability. The real test will be whether Congress acts to reclaim tariff authority or if bipartisan opposition to Trump's trade policies remains rhetorical rather than legislative.
https://cointelegraph.com/news/us-lawmakers-critical-tariffs-derail-economy