President Donald Trump has imposed extensive “Reciprocal Tariffs,” resulting in multiple legal challenges. He now plans to escalate these disputes to the Supreme Court following lower court actions. This highlights significant tensions in U.S. trade policies.
On April 2, 2025, Trump signed Executive Order No. 14257, instituting baseline 10% tariffs on trading partners, further raising China-specific tariffs. Legal challenges have led to consolidated cases in federal court, stalling immediate enforcement.
Market Volatility Fueled by Injunction on Tariffs
The tariffs have sparked substantial market volatility and have been temporarily barred by an injunction. As the legal process unfolds, businesses and markets remain wary of potential financial repercussions if tariffs are imposed.
Market experts suggest that the imposition of tariffs may influence digital asset markets, causing shifts in BTC and ETH valuations. The absence of official statements underscores the ongoing uncertainty surrounding these tariffs and their potential effects on cryptocurrency trading.
Cryptocurrency Impact from Historical Tariff Volatility
Previous tariffs under Trump from 2018 to 2020 resulted in increased market volatility. During these periods, Bitcoin sometimes acted as a risk diversion tool but showed no direct correlation. Current reactions suggest a similar trajectory.
Experts from Kanalcoin note that the ongoing legal battles could have ramifications for cryptocurrency markets, akin to past tariff-driven volatility. Stakeholders are advised to monitor developments closely for potential market trends.
“On May 28, 2025, a three‑judge panel…held that both the Reciprocal Tariffs and the Trafficking Tariffs exceeded the President’s authority under IEEPA and permanently enjoined the Government from imposing these tariffs.” – U.S. Court of Appeals