The U.S. Supreme Court delivered a landmark 6-3 ruling on February 20, 2026, declaring that President Donald Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs. Chief Justice John Roberts authored the majority opinion, with Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissenting.
The decision invalidates the core framework of Trump's tariff strategy, including the 10% "Liberation Day" baseline tariff and many country-specific reciprocal duties. Specifically, it blocks a 25% tariff on most imports from Canada and Mexico, a 10% tariff on most Chinese imports, and at least a 10% tariff on nearly all other trading partners. Legal analysts estimate the ruling could force the government to refund more than $175 billion in previously collected tariff revenue.
The immediate market reaction was significant. Bitcoin (BTC) briefly spiked above $68,000, gaining roughly 2% on the news, before quickly retracing below $67,200. The price action, observed on a 1-hour chart, saw BTC push toward $68,200 before falling back to hover near $67,100. This sharp but short-lived volatility highlighted Bitcoin's sensitivity to major macroeconomic headlines.
The ruling injected immediate uncertainty into global trade policy and coincided with other trade developments. Hours before the decision, the administration finalized a reciprocal trade deal with Indonesia, which will eliminate tariffs on 99% of U.S. goods while the U.S. locks in a 19% tariff rate on Indonesian imports (down from a threatened 32%). Furthermore, India's Commerce Minister confirmed an interim U.S.-India trade pact is expected to be signed in March 2026 and operationalized in April, reducing reciprocal tariffs on Indian goods from 25% to 18%.
Despite the court ruling and new agreements, tariffs implemented under other statutes, such as Section 232 duties on steel and aluminum, remain in place. The broader economic context includes a U.S. trade deficit that hit a new high in 2025, although the gap with China narrowed to its lowest level in two decades.
For Bitcoin, the event underscored its role as a risk asset reactive to macro shocks. The quick rejection after the initial spike above $68,000 suggests traders treated the news as a short-term catalyst rather than a structural driver, with the $66,000–$66,200 region acting as key intraday support.
