Bitcoin rallied over the weekend after U.S. President Donald Trump late Saturday raised recently announced global tariffs from 10% to 15% and said the new tariffs would take effect immediately.
The move comes after the U.S. Supreme Court ruled to limit the legal authority it previously used to impose broad import tariffs.
Bitcoin doesn’t move
Cryptocurrencies barely moved on the news. Bitcoin hovered around $68,000, Ethereum showed little change and smaller tokens lost less than 1% overall, according to the market tracker. According to the report, traders saw prices briefly wavering before stabilizing, suggesting the shock was short-lived.
Legal restrictions and their implications
According to the report, the transition to alternative trade laws limits the extent to which the president can apply such tariffs. The cited statute allows temporary tariffs capped at 15% and generally applies to countries with which the United States has a trade deficit for a set period of up to 150 days.
Legal experts say these restrictions could prevent the bill from becoming a permanent tax increase on imported goods.
Trump said this on his Truth Social platform.
“As President of the United States, I will, effective immediately, raise the global 10% tariffs on countries that have been ‘riping’ America off for decades, without retaliation until I come, to the fully permitted and legally tested level of 15%.”
How Traders Think
Some investors appear to have viewed the announcement as a headline event rather than the beginning of a lasting economic shock.
Volume patterns showed no sustained selling pressure and the cryptocurrency market’s risk appetite quickly recovered. A previous court ruling that curtailed the executive branch’s emergency powers over tariffs may have removed some of the uncertainty, at least for now, according to the report.
Market watchers will be watching closely over the next few days. If the White House seeks to expand temporary authority or expand the list of target countries, the mood in both the cryptocurrency and stock markets could change.
The bigger picture for the economy
A blanket increase in tariffs, even if temporary, raises questions about the costs to businesses and consumers.
Import tariffs are often cascaded in the form of higher prices or narrower margins, and global trading partners are likely to push back diplomatically and legally.
Some foreign leaders and industry groups were quick to criticize the move, warning it could slow growth and raise consumer rates.
Far from being a market-draining shock, this episode reads like a high-profile policy stunt with limited immediate market effects so far.
That could change if the bill expands beyond the legal limits pointed out by lawmakers and the courts. For now, it appears that cryptocurrency traders are choosing to watch and wait until prices get close to recent highs.
Featured image from Unsplash, chart from TradingView
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