The Supreme Court will meet on Wednesday with the agenda of customs tariffs and discussions have accelerated today. Such discussions and increasing uncertainty are not good for cryptocurrencies. The growing atmosphere of uncertainty and chaos this week BTC decline It supports. So what will the Supreme Court do? What will be the consequences? How will cryptocurrencies be affected?
Tariffs in Supreme Court
Wednesday, November 5 is the big day and we talked about its importance in Sunday’s weekly calendar article. Some companies and states support Trump customs duties He argues that he exceeded his legal powers. Applications were made to lower courts on this issue and eventually the issue was taken up to the Supreme Court.
Trump implemented three different customs duties this year: basic customs duty (10% for all countries), punitive taxes applied to countries seen as enemies of the USA, and other punitive taxes applied to countries that do not do enough on fentanyl (Canada, China, Mexico).
It is aimed that the customs duties will bring close to 1 trillion dollars to the USA by June 2026. At the same time, Trump brought trillions of dollars of investment to the USA with the threat of tariffs. A significant portion of these have been completed during the agreement process and the target is 15 trillion dollars.
The contribution of tariffs to the USA is 15 trillion dollars at the most optimistic estimate. And if the Supreme Court decides that Trump does not have such authority, $15 trillion will evaporate and tens of billions of dollars in taxes collected to date will be refunded. In other words, an environment of complete chaos and uncertainty will be triggered. Negotiations and discussions throughout 2025 will all come to nothing.
What Will Happen to Cryptocurrencies?
Trump losing the court will cause him to wave his fingers again and try to apply the same rates with different powers. In other words, just when we thought things were going well and the tariffs were normalizing, we were forced to start over again, so in any case, this situation was at the beginning. cryptocurrencies It will be against you. Because Trump will not run away from the fight.
Three lower courts ruled that Trump improperly used a 1977 law that allows him to regulate the economy during emergencies. However, since the Supreme Court has not yet given the final decision, the imposition of customs duties has not been prevented.
Chinese and imagine the statements other countries would make after the supreme court’s decision. They will say exactly this: “We have been trying for a year in vain. Trump does not have the authority to impose customs duties, we will not pay you extra money.” How will Trump respond to these statements? While all this chaos is happening cryptocurrenciesHow will risk markets, including Turkey, respond to this? This is exactly the problem. The scenario where Trump loses is quite risky.
What can Trump do? Of course, the current laws make it possible to impose additional taxes on a number of items in sectors such as automobiles, steel, aluminum and copper within the scope of national security. In addition, the 1974 Trade Act, which enables an additional tax of up to 15% for 150 years due to trade imbalances, is also a trump card, albeit a weak one, in Trump’s hands.
If Trump wins, US Presidents will be able to threaten other countries with tariffs in the long run. The way will be paved for surprise additional taxes. The good news is that other countries will likely be more willing to make longer-term deals with Trump and take action to reduce uncertainty, at least in the medium term. This will be in favor of cryptocurrencies. trump He said this about this;
“If we don’t win this case, we will be left in a weakened, troubled financial mess for many years to come. If we win, we will be the strongest economy in the world.”
