US President Donald Trump is now using alternative legal channels to impose tariffs, but critics say his enforcement powers are still limited.
US President Donald Trump announced on Saturday that he would raise the worldwide tariff rate announced on Friday from 10% to fifteen%, which might take effect immediately.
Trump reiterated his criticism of the Supreme Court's decision to remove his authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). In a Saturday Truth Social post, he said:
“As President of the United States of America, I’ll, effective immediately, raise the worldwide tariff rate from 10% to the fully permissible and legally tested level of 15% on countries, lots of which have “ripped off” the United States for a long time without retaliation until I actually have done so.”
On Friday, Trump announced a ten% global tariff, to be added on top of existing tariffs that remained in effect after the court ruling, under alternative legal provisions outlined within the Trade Expansion Act of 1962 and the Trade Act of 1974.
Source: Donald Trump
However, crypto lawyer Adam Cochran said the scope of those laws also limits Trump's power to impose sweeping tariffs indefinitely.
“The law he applies allows this just for countries with which we’ve got a deficit, for a set period of 150 days and at a limited percentage,” he said.
Each recent tariff announcement from Trump caused turmoil within the crypto and stock markets, with severe downturns negatively impacting asset prices and fueling macroeconomic uncertainty amongst investors.
Crypto markets held regular within the wake of recent tariff announcements
The crypto market, which generally experiences sharp sell-offs in response to tariff announcements, has held its ground within the wake of recent tariff headlines.
Bitcoin price had little response to Trump's tariff announcements on Friday and Saturday. Source: TradingView
The price of Bitcoin (BTC) remained stable on the $68,000 level, and Ether (ETH) also remained stable, showing little to no changes for the reason that recent tariffs were announced on Friday.
The Total3 indicator, which tracks the full market capitalization of the crypto sector excluding BTC and ETH, fell lower than 1% on Saturday and stays at around $713 billion on the time of writing.
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