Trump Team Crafts Backup Tariff Plan as Supreme Court Decision Nears
- The White House is drafting fallback plans as Trump tariffs face scrutiny from the Supreme Court.
- Traders expect the Court to reject tariffs, which could boost bullish sentiment in crypto.
- New tariff paths were studied, but legal and implementation risks remain high.
The White House is considering other alternatives as the Supreme Court is about to decide on the Trump tariffs. Crypto traders believe that the Court will overturn these tariffs, and this can cause a bullish run throughout the digital asset market.
According to Bloomberg report, the Office of the US Trade Representative and senior officials at the Commerce Department have considered a number of fallback plans. They seek to overturn the current tariffs within a short period in case they are struck down by the Court.
The administration desires to prevent any loophole in enforcing the trade and keep pressure on the foreign allies. These attempts demonstrate the extent of worry within the White House regarding the legal perspective.
Supreme Court to Weigh Final Decision on Tariff Legality
The legal case revolves around the International Emergency Economic Powers Act of 1977. Trump applied this law to justify unilateral and widespread tariffs. According to his team, the statute gives broad presidential powers in case of foreign economic danger.
Lower courts have disagreed with these tariffs, determining that most of them exceed statutory boundaries. It will now be up to the Supreme Court to decide which interpretation wins out. The Supreme Court has not declared when it will make its ruling.
Also Read: Trump Unveils $2,000 Tariff Dividend, Could Arrive Through Tax Cuts
The administration is also seeking new directions in accordance with Sections 301 and 122 of the Trade Act. These provisions enable the president to act without the congress, but these are limited in relation to the powers that have been claimed by Trump.
Trump’s Tariff Moves Shape Markets and Drive Trade Tensions
However, their implementation may be slower and more vulnerable to new legal challenges. The industries affected by the tariffs may argue that the administration is rebranding their rejected policies.
The Trump tariffs have significantly influenced both financial and political discussions throughout the year. Trump imposed far-reaching country-based tariffs on April 2, named the Liberation Day. He also threatened to put tariffs of up to 150% on China. The threat drove two countries into a trade truce that lasted a year.
According to Polymarket data, crypto traders are currently wagering on the Supreme Court ruling against the Trump tariffs. there is only a 25% probability of Trump prevailing in his ruling. At the beginning of the year, optimism was at 60%. This created great uncertainty when it emerged that several justices were not convinced by the legal arguments presented by the administration even after hearing.
Source: Polymarket
Also Read: Dubai Court Freezes $456 Million Linked to Justin Sun’s Techteryx Bailout
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