The Supreme Court of the United States on Friday struck down President Donald Trump’s sweeping global tariff regime, ruling 6-3 that he exceeded his authority by imposing broad import duties under a national emergency law. The decision invalidates tariffs Trump levied in early 2025 under the International Emergency Economic Powers Act, a statute enacted in 1977 and historically used to sanction foreign adversaries during crises. Trump cited persistent trade deficits and national security concerns, including fentanyl trafficking, to justify duties ranging from 10% to 50% on imports from nearly every major trading partner. Writing for the majority, Chief Justice John Roberts said the Constitution leaves little ambiguity about who controls the taxing power.
“The Framers did not vest any part of the taxing power in the Executive Branch,” Roberts wrote, adding that no previous president had used the statute to impose tariffs “of this magnitude and scope.” The ruling marks the first major test of Trump’s second-term economic agenda before the high court, which includes three justices he appointed during his first term. Lower courts had already found that the administration overstepped, emphasizing that Article I of the Constitution assigns tariff authority to Congress.
President Trump said he has a backup plan to pursue tariffs following the court ruling, according to various sources. Bitcoin jumps on the news. In financial markets, the reaction was swift and unsettled. Bitcoin rose about 2% within minutes of the decision, briefly climbing above $68,000 before retreating toward $67,500.
The move reflected a familiar pattern in digital asset markets, where headline-driven rallies have struggled to hold. The mixed response underscored the ambiguity surrounding the ruling’s economic impact. For some investors, the invalidation of tariffs removes a source of policy uncertainty that has weighed on global trade. For others, it introduces new questions about fiscal gaps, refund obligations and next steps from the White House.
Reuters has reported that more than $133 billion in tariff revenue collected under the emergency authority could be subject to refunds. Trump has said his broader tariff program generated roughly $600 billion, though that figure has been disputed. If significant sums must be repaid, Treasury financing needs could shift at a delicate moment for bond markets. Bitcoin is trading near $67,600.
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