Shift to alternative tariffs: Trump's symbol of political will in the trade war

The U.S. Supreme Court has put an end to the tariffs case, but the Trump administration does not see this as a defeat, rather as a shift to new positions. During a briefing, the president stated that there are methods more powerful than those blocked by the court and is preparing a new wave of customs barriers through alternative mechanisms.

For financial markets, this means one thing: the topic of inflation risks related to tariffs will remain a focus for macroeconomists. If the administration truly switches to reserve options, volatility in risk assets, including cryptocurrencies and BTC, is likely to increase.

Court Criticism: A Symbol of Power Disagreements

Trump expressed dissatisfaction with the court’s decision, accusing some judges of lacking political will. He emphasized that customs policy is a symbol of national economic security. The president used a figurative expression, calling the judges “puppets” — an allegory reflecting his view of decision-making issues. He reminded that other countries “have benefited from trade imbalances for years” and are now not interested in imposing tariffs.

Trump’s main message: the court’s decision is a temporary obstacle, not the final point in trade strategy.

A New Arsenal of Trade Powers

Instead of the IEEPA (International Emergency Economic Powers Act), which the court limited, the administration is considering alternative legislative bases:

• Section 301 of the Trade Act of 1974 — used for countries without existing trade agreements and allows tariffs to be imposed without Congressional approval
• Section 122 of the same law — provides for a basic tariff of up to 15% for up to 150 days without legislative approval. Notably, this tool has never been used by any U.S. president

Trump also confirmed plans to introduce a 10% global tariff in addition to existing customs duties. According to him, implementing these measures does not require Congressional consent.

Market Implications: Inflation Back on the Agenda

The court blocked one mechanism, but the fundamental risk remains. If the White House turns to using Section 301 or Section 122, markets will quickly reassess inflation expectations.

Tariffs exert direct pressure on import costs, and thus on price levels. The Fed is already facing an uncomfortable dynamic: recent data on personal consumption expenditures show inflation exceeding forecasts. If new customs barriers are added, the central bank will face a tough choice between fighting inflation and supporting economic growth.

Cryptocurrencies and risk assets react sharply to such macroeconomic shifts. BTC (current price $67.31K, -2.01% over 24 hours) is likely to face additional pressure if markets overestimate the likelihood of new tariffs and their impact on exchange rates and inflation.

The Resilience of the Idea: A Symbol of Political Persistence

Currently, markets remain in a consolidation range, with no clear signs of panic. However, any statement about activating Section 301 or Section 122 could quickly change the situation.

The symbol here is not only in the political will of the president but also in the fact that customs policy remains a tool that the administration does not intend to delay. The court may limit one path, but alternative routes remain open — and that is the main point.

Investors should be prepared for renewed discussions about tariffs, inflation, and Fed responses.