Key Highlights
- US Supreme Court strikes down central pillar of Trump’s tariff regime.
- Asian firms facing new 10% global tariff imposed by President Trump.
- Uncertainty continues as US trade policy remains unclear.
- Firms are reshaping supply chains and exploring new markets.
Why Asian firms aren’t cheering the end of Trump’s tariffs? You might think this is new, but… it’s not. The tale of uncertainty has been ongoing for years.
Just last week, the US Supreme Court struck down a key part of President Donald Trump’s sweeping tariff regime. But businesses across Asia did not pop champagne corks in celebration; instead, they faced another round of confusion over access to America’s largest consumer market.
Uncertainty Reigns
Push Sharma, founder of Singapore-based wellness brand Haldy, had already done the groundwork—trademark registrations, distributor discussions—but then everything felt drastically altered. “We had to defer our plans,” he said. This is not a new phenomenon; it’s business as usual in this era of shifting trade winds.
Shifting Sands
The tariffs were supposed to reduce global dependence on China among other things, but now exporters warn that the policy could have the opposite effect. Monica Gorman, a former White House trade official, described the new tariffs as a “stop-gap” while Washington prepares fresh measures. It’s like playing musical chairs with no clear endgame.
New Year, Same Problems
On Friday, the US Supreme Court ruled that the emergency powers law used by Trump to impose tariffs did not authorise his policy regime, effectively invalidating billions of dollars in levies. Within hours, Trump signed an executive order to impose a new 10% global tariff using legislation allowing him to impose import taxes for 150 days without congressional approval.
The next day, he threatened to raise it to 15%. When the duty actually came into effect on Tuesday, official documents showed the rate was 10% as no new directive had been issued to increase it. Anyone hoping for clarity in Tuesday’s State of the Union address would have been disappointed; Trump repeated his criticism of the ruling and said levies “will remain in place under fully approved and tested alternative legal statuses,” but offered little detail.
Investment Decisions
Dan Ives of Wedbush Securities said companies embedded in Asian production networks now face investment decisions without guidance from Washington. “Should we move supply chains from one country to another without knowing the rules of the game? Welcome to navigating tariffs in 2026.” Pricing is also a central problem for Sharma’s Haldy brand. “If you don’t know what your final costs will be, the cost of doing business becomes very difficult because you can’t price your products.”
Logistics and Supply Chains
Logistics giant DHL said businesses are having to navigate a more complex operating environment. While some tariffs were halted by the Supreme Court ruling, many duties remain in place, leaving operational questions unresolved. “It is too early to assess how potential refunds may be processed or what they will look like,” said Niki Frank, chief executive of DHL Global Forwarding Asia-Pacific. “We are closely monitoring the evolving legal developments to ensure customers can fully exercise their rights under the law.”
Given the environment, DHL said it was too soon to predict if shipping volumes might change. Supply chains typically adjust slowly, as decisions require years of planning: “Tariffs are just one part of the context companies take into account.” FedEx has also filed a lawsuit for a full refund of Trump’s emergency tariffs.
China’s Dominance
Even as the US adjusts its trade policy, China remains the unavoidable hub of manufacturing in Asia. Tariffs tied to “country of origin” rules still apply regardless of where a company is headquartered. This means businesses cannot easily sidestep Chinese supply chains.
Tomi Mäkelä from Thailand’s Lanna Clothing said, “It’s very hard to keep China out of play.” If it’s made in China, there’s a 25% tariff.
Chinese manufacturers are also raising prices for regional clients to keep their factories going—lower demand in the US means Chinese factories are not operating at capacity. And China’s biggest advantage remains: its ability to produce at scale and do so efficiently and cheaper than competitors. South East Asian exporters are stuck; they could gain from companies diversifying away from China, but if Beijing benefits from lower tariffs, it could make these businesses less competitive globally.
Reshaping Strategies
Firms like Haldy have expanded retail operations in Malaysia and begun exploring markets in the Middle East. “I’ve made a conscious decision to look at things that are within my control,” Sharma said. Mäkelä of Thailand’s Lanna clothing is ramping up business in Canada, looking to Australia and Europe for new customers.
While the US market remains too large for Asian exporters to ignore, after a year of shifting tariffs, many companies are no longer waiting for clarity from Washington. Instead, they are reshaping their supply chains and entering new markets as they try to deal with the new normal.
For governments, businesses, and financial markets only one thing is certain: more uncertainty.
What tariffs has Trump introduced? The 10% global tariff. Why?
To reduce global dependence on China among other things. What now for Asia after Trump’s tariffs struck down? Reshaping strategies and navigating a complex operating environment. More uncertainty, as always in this game of trade policy.
