In a landmark 6-3 decision on February 20, 2026, the U.S. Supreme Court struck down the bulk of President Trump tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Bitcoin jumped over 1.7% to above $67,700 within minutes of the news breaking.
But don’t call it a full win for free traders just yet. Trump already has a backup plan, and he’s not wasting any time.
What the Supreme Court Actually Ruled on Trump Tariffs
Chief Justice John Roberts wrote it plainly: “We hold that IEEPA does not authorize the president to impose tariffs.”
The case, consolidated as Learning Resources, Inc. v. Trump, challenged whether trade deficits and fentanyl flows qualified as a “national emergency” under the 1977 IEEPA statute. Two lower courts had already ruled against the administration. The Supreme Court agreed.
The ruling wipes out roughly 70% of current U.S. tariff revenue, according to InfinityHedge. The Cato Institute put IEEPA-sourced duties at about 60% of total tariff collections in fiscal years 2025 and 2026. That’s $133.5 billion collected through mid-December alone, per U.S. Customs and Border Protection data.
The court did not address whether importers are eligible for refunds. That question now falls to the U.S. Court of International Trade. Analysts estimate potential refund claims could reach $130–175 billion.
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Trump’s Response: “I Have a Backup Plan”
Trump called the ruling “deeply disappointing” but didn’t skip a beat. Within hours of the decision, he signed an executive order imposing a 10% global tariff using Section 122 of the 1974 Trade Act, effective in three days.
“Other alternatives will now be used to replace the ones that the court incorrectly rejected,” Trump told reporters.
Treasury Secretary Scott Bessent had telegraphed this move back in December. He said the administration could “recreate the exact tariff structure” through other legal authorities. He acknowledged, though, that IEEPA had given the team “much more negotiating room.” The fight over Trump tariffs is far from finished.
Trump’s Five Fallback Options – Explained
The Congressional Research Service lays out at least five legal tools Trump can still use. Here’s the short version:
Section 232 (national security) – No limit on duration or rate. Requires a Commerce Department investigation. Trump already used this on steel and aluminum in 2018 as part of his first wave of Trump tariffs.
Section 201 (domestic industry injury) – Capped at a 50% rate increase, lasts four years (extendable to eight). Requires an International Trade Commission review. Trump used this on solar panels and washing machines in 2018.
Section 301 (trade agreement violations) – No tariff rate cap, lasts four years with no maximum extension limit. Requires a USTR investigation. Trump used this against China in 2018.
Section 122 – The new weapon. Allows a 15% baseline tariff for 150 days without Congressional approval. It has never been invoked by any president before – until now, per InfinityHedge. Trump just activated it as his immediate replacement for the struck-down Trump tariffs.
Section 338 – Targets discrimination against U.S. commerce. No duration limit. Rate capped at 50%. No federal investigation required. Also never used before.
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What Do Trump Tariffs Mean for Bitcoin?
Markets didn’t panic. Bitcoin climbed above $67,700 immediately after the ruling. Ethereum gained over 2%, Solana surged 4%, and crypto stocks followed. Coinbase (COIN) rose 3.5%.
VanEck Head of Research Matthew Sigel made a sharp observation on X: without tariff revenues, “money printing and debasement will accelerate.” That’s traditionally bullish for Bitcoin – widely held as a hedge against dollar debasement.
Goldman Sachs called the net result “mildly supportive for equities and mildly negative for bonds,” noting the real story is “materially more trade uncertainty.”
For crypto specifically, CoinDesk flagged one underappreciated risk: the ongoing Trump tariffs battle could steal Senate floor time away from the Digital Asset Market Clarity Act – crypto’s top legislative priority right now. If the political fallout helps Democrats in midterms, the industry could face a harder road to passing market structure legislation.
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Does the Supreme Court ruling cancel all Trump tariffs?
No. It only strikes down tariffs imposed under IEEPA. Tariffs under Sections 232, 201, and 301 remain in place. Trump is already adding new ones under Section 122.
Will importers get a refund?
The court didn’t address refunds. The U.S. Court of International Trade is expected to handle that process. Potential refunds could reach $175 billion.
Is this bullish or bearish for Bitcoin?
Short-term: mildly bullish. BTC jumped on the news. Long-term: uncertain. More trade policy chaos and potential money printing could favor Bitcoin as a store of value.
Has Section 122 ever been used before?
No. According to InfinityHedge, Section 122 and Section 338 have never been invoked by any U.S. president until Trump used Section 122 today as a direct replacement for his struck-down tariff powers.
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