Goldman Sachs shrugs off court blocking Trump’s tariffs

Goldman Sachs shrugs off court blocking Trump’s tariffs originally appeared on TheStreet.

Bitcoin and broader crypto markets remained choppy Thursday as macro uncertainty deepened following a court ruling blocking President Trump’s April tariff hike. BTC was down 1.4% at $107,326, while Ethereum hovered around $2,730.

“This kind of geopolitical whiplash always spills over into crypto,” said pseudonymous trader @DeltaDecks, who runs a trading Discord focused on macro-crypto crossovers. “The court ban on tariffs might delay Trump’s trade war playbook, but the market expects him to find a workaround — and that keeps volatility high, especially for assets seen as inflation hedges like Bitcoin.”

Earlier this week, the U.S. Court of International Trade ruled against the White House’s steep reciprocal tariffs, calling them procedurally invalid. But according to a new note from Goldman Sachs, the setback may be short-lived.

The bank’s chief economist Jan Hatzius wrote that the Trump administration is expected to appeal the decision, while also turning to alternative legal powers — including Section 301 and Section 122 of the Trade Act of 1974 — to reimpose tariffs.

“As the administration can impose an across-the-board tariff and country-specific tariffs under other legal authorities… this ruling increases uncertainty but might not change the final outcome for most major U.S. trading partners,” Hatzius wrote.

Goldman added that with only 10 days to comply with the court’s ruling, the administration is likely to invoke Section 122, which allows tariffs of up to 15% for 150 days on nations with large trade surpluses with the U.S.

The note also predicted a wave of Section 301 investigations targeting major trade partners, although Goldman said it was unlikely the administration could finish all such probes “within the next several months.”

According to the trader DeltaDecks, Goldman Sachs’ note signals to investors that "the tariff plan isn’t dead — it’s just getting rerouted."

"They’re basically saying: ‘Relax, Trump still has tools,’ the analyst added. "But for crypto, that’s not reassuring. Crypto thrives on predictability and momentum. If Trump reimposes tariffs using Section 301 or 122, we could see more market shocks, especially if China or the EU retaliate."

He continued, “The minute you get another wave of tariff threats, capital rotates out of risk assets like crypto and into defensive plays. That’s what you’re seeing now with Bitcoin hovering under pressure and altcoins bleeding."

Goldman Sachs shrugs off court blocking Trump’s tariffs first appeared on TheStreet on May 29, 2025

This story was originally reported by TheStreet on May 29, 2025, where it first appeared.

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