Today’s Supreme Court hearing holds significant implications for cryptocurrency enthusiasts and global markets. There’s a possibility that Trump’s tariffs could be overturned, potentially resuming a process that seemed to have been largely overcome over the past 11 months. The hearing brings vital questions: What transpired during today’s proceedings? What decisions are expected?
Supreme Court Tariff Hearing
Trump’s chief legal advisor was questioned in court about the legitimacy of tariffs and the authority under which Trump imposed them. The representatives opposing the tariffs appear to be in a more advantageous position. Judges expressed skepticism about the notion that the 1977 economic emergency law allows Trump to impose tariffs at his discretion.
Chief Justice John Roberts, Justice Neil Gorsuch, and others invoked the Major Questions Doctrine, which suggests that laws not foreseeing significant policy shifts by the executive branch cannot be used to assert “extraordinary powers.” This doctrine had previously been used to challenge some decisions of the Biden administration. Currently, the court members do not seem to favor the White House’s stance.
The hearing, beginning around 10:00 AM Washington D.C. time, was scheduled for 80 minutes but extended to nearly three hours. The nine judges deliberated whether Trump could impose significant tariffs without Congress’s approval under the International Emergency Economic Powers Act.
Impact on Cryptocurrencies
Three lower courts ruled against Trump. Today’s indications from judges do not favor a pro-Trump decision. The plaintiffs, consisting of small businesses and states, assert that Trump overstepped his authority by bypassing Congress. Trump’s recent emphasis on filibuster is attributed to this issue. If the decision goes against him, he plans to push tariffs through Congress with a simple majority vote of 51, though even some Republicans do not support him on this matter.
If the Supreme Court rules against Trump, billions collected in tariffs will be refunded. A substantial portion was intended for distribution as $2,000 checks to citizens, akin to pandemic relief. Trump planned to use this revenue to address the trillion-dollar debt, and an unfavorable ruling would likely infuriate him.
Such developments could lead to increased tension, further debates, and uncertainty, creating a more negative environment for cryptocurrencies. In the best-case scenario, tariffs are entirely canceled, and Trump pushes countries to lower their tariffs against the US through threats, negating the inflation scenario linked to tariffs. This might signal deflation due to the nullified tariff impact and enhance cryptocurrency rises under the assumption of a faster rate cut.
A decision is not expected immediately. Predicting the timing is challenging, but details from the hearing suggest a high chance of Trump exiting empty-handed.