President Trump invoked the 1974 Trade Act on Wednesday to salvage his tariff agenda, hours after the Supreme Court blocked his use of the International Emergency Economic Powers Act for the same purpose. Bitcoin slid toward $65,000 as traders priced in a longer period of trade uncertainty. The move marks the latest legal pivot in a tariff fight that keeps rattling crypto markets.
The Supreme Court ruling
The justices ruled that IEEPA — a law originally designed to deal with national security threats like foreign asset freezes — couldn't be stretched to impose broad tariffs. It was a clean loss for the administration. Trump didn't waste time. By the end of the day, he'd signed a new proclamation citing the 1974 Trade Act, which gives the president wider authority to adjust tariffs without congressional approval.
Why the 1974 law matters
The Trade Act of 1974 is the same statute past presidents have used to impose steel and aluminum tariffs. It's not a perfect fit for Trump's broader agenda — the law requires a formal investigation by the U.S. International Trade Commission before most actions — but it keeps the tariffs alive while the administration looks for a more durable legal foundation. Courts have generally been more deferential to trade actions under this law than to emergency powers claims.
Market jitters
Bitcoin's slide toward $65,000 isn't just about tariffs. Courts have been striking down Trump's trade actions one by one, and each ruling adds a layer of uncertainty. The market doesn't know which legal theory will hold — or if the tariffs will survive at all. That kind of ambiguity tends to push risk assets lower. The timing isn't great: crypto was already struggling to find a clear direction this month.
The 1974 Trade Act gives Trump a temporary path forward, but it's not bulletproof. Legal challenges are already being prepared, and the Supreme Court's IEEPA ruling sets a precedent that could influence how judges view executive overreach in trade. The big question: can the administration get a tariff framework that survives judicial review before the next market shock hits?
