Liberation Day tariffs: 89k manufacturing jobs lost after Court ruling
A new report from the Advancing American Freedom Foundation says Trump’s “Liberation Day” tariffs destroyed about 89,000 manufacturing jobs instead of creating them. The findings come after the U.S. Supreme Court ruled on Feb. 20, 2026 that the tariffs—implemented under the International Emergency Economic Powers Act (IEEPA)—were unconstitutional.
The tariffs were announced on April 2, 2025 with rates reportedly ranging from 10% to 50% on imports, and effective rates rising by about 5 percentage points under the IEEPA framework. Citing Bureau of Labor Statistics data, the report estimates total manufacturing job losses since Trump’s second-term inauguration at about 82,000 to 102,000 by March 2026.
Other analyses referenced in the report suggest the policy contributed to roughly 2,800 factory closures. It also estimates an average household faced around $700 in additional annual costs. With the Supreme Court striking down the tariffs, businesses have moved to pursue estimated refunds of up to $166 billion, after de minimis exemptions and related retaliatory structures were removed.
For markets, the article links tariff escalation risk to crypto stress: in Oct. 2025, threats of 100% duties on some Chinese imports triggered crypto liquidations of roughly $18–$19 billion, and Bitcoin fell about 8% shortly after.
Bearish
This news is bearish for traders mainly because it ties tariff uncertainty/escalation to measurable crypto stress. The article states that tariff threats in Oct. 2025 triggered $18–$19B in crypto liquidations and a sharp ~8% BTC drop—exactly the kind of risk-off/liquidity shock that often precedes further volatility.
Even though the Supreme Court voided the tariffs (which could reduce forward policy risk and eventually support sentiment), the report’s core message is still negative: tariffs are associated with significant manufacturing job cuts and large fiscal/financial fallout (e.g., up to $166B in refunds). That combination can keep macro uncertainty elevated, prolonging hedging demand and suppressing leverage.
In the short term, traders may react to any renewed tariff headline risk by trimming exposure or reducing leverage, especially around macro-policy catalysts. In the longer term, a court invalidation can be mildly stabilizing, but markets typically need time to price the new regime and for liquidation-driven positioning to unwind—so downside volatility risk remains.