Supreme Court voids IEEPA tariffs, shifts US trade to USTR & Section 301

The US Supreme Court (6-3) ruled in Learning Resources, Inc. v. Trump (Feb 20, 2026) that IEEPA tariffs are unconstitutional. The decision limits the executive’s ability to use IEEPA as an emergency “blank check” and re-centers tariff power in Congress. This raises a potential fiscal and liquidity angle for markets: duties on imports from Canada, Mexico, China and other countries were invalidated, with the possibility of unlocking about $175 billion in importer refunds. After losing the IEEPA route, the administration pivoted to alternative authorities. In the latest update, enforcement is increasingly being driven by the Office of the US Trade Representative (USTR) under Section 301 of the Trade Act of 1974 (led by Ambassador Jamieson Greer). USTR has launched multiple Section 301 probes covering 15+ countries and the EU, including issues such as forced labor and other trade violations. President Trump also announced alternative global import tariffs of 10–15% using different statutory bases. However, Section 301 typically requires formal evidence gathering, public comment, and bilateral negotiations, making it slower and more transparent than sudden IEEPA-driven tariff actions. Crypto traders’ takeaway: Bitcoin reacted to the IEEPA tariffs ruling with a quick ~2% spike before slipping back below $65,000. Traders are repricing the risk premium because the tariff pathway shifts from “overnight” IEEPA shocks to longer Section 301 timelines. Near-term volatility catalysts are likely probe milestones, negotiation outcomes, and any retaliation. Over the longer run, reduced IEEPA discretion may lower surprise risk, but ongoing legal and diplomatic processing can still keep trade-related macro uncertainty elevated.