Bitcoin surged roughly 1.7% immediately after the Supreme Court ruling, briefly trading in the $67,700,$68,000 range. The logic was simple: a court limiting unilateral tariff authority looked like a de-escalation signal for trade tensions, which have been a persistent drag on risk assets.

Section 122 lets a president impose temporary tariffs to address "large and serious" balance-of-payments deficits. The statute caps rates at 15% and requires the tariffs to expire after 150 days unless Congress votes to extend.

That timeline runs out around late July. The administration faces three paths: convince Congress to codify the tariffs, find yet another legal mechanism, or let them lapse. On May 7, the U.S. Court of International Trade ruled 2-1 that the Section 122 tariffs are unlawful, though the administration continues to litigate.

Traders are watching two signals. First, whether Congress moves on tariff legislation, which would likely weigh on risk assets across the board. Second, whether trading partners retaliate, escalating the trade conflict into new territory.

• Supreme Court struck down Trump's IEEPA tariffs 6-3; Trump immediately pivoted to Section 122 of the Trade Act of 1974