Key facts
- US Supreme Court ruled many of President Donald Trump's 2025 tariffs illegal.
- Trump announced new global levies of 15% on goods entering the US.
- US customs has halted the collection of tariffs associated with Trump's trade policy.
- Asian nations that had negotiated trade deals with the US face renewed uncertainty.
- China is assessing the ruling's impact and reiterates opposition to unilateral tariff increases.
Asia's major economies are navigating a new landscape of trade uncertainty following a US Supreme Court ruling that invalidated many tariffs imposed by President Donald Trump in 2025. In response, Trump announced new global levies of 15% on goods entering the US, while US customs confirmed a halt to the collection of tariffs linked to his signature trade policy.
Analysts suggest that despite the new tariff rate appearing lower for some nations, significant uncertainties persist. Adam Samdin of Oxford Economics noted that the current US administration still aims to enforce higher tariffs, and trade deals signed recently lack the legal binding of traditional pacts. Smaller Asian economies are also cautious about potentially antagonizing the US administration, as their economic standing may depend heavily on their relationship with it.
China, preparing to host Trump, stated it is comprehensively assessing the ruling's impact and reiterated its opposition to unilateral tariff increases. US Trade Representative Jamieson Greer indicated that the upcoming meeting with Chinese leader Xi Jinping would focus on maintaining stability and ensuring compliance with existing agreements, rather than trade disputes.
Regional allies are also evaluating the situation. Japan's government plans to carefully examine the ruling and the US response. Itsunori Onodera, a former defense minister and LDP executive, expressed concern that the new tariff rate could accelerate countries distancing themselves from the US. South Korea's Industry Minister, Kim Jung-kwan, highlighted uncertainty regarding potential refunds for tariffs already paid, while noting that computer chips were not subject to the new levies. Taiwan, a key chip producer, indicated a limited impact but will monitor developments closely. Singapore, which saw its tariff rate increase from 10% to 15%, is awaiting clarification from US officials on the implementation of the new levies.