The US Supreme Court's decision striking down President Trump's tariff regime has left Asian businesses in turmoil, grappling with uncertainty about penetrating the vast American market.
Impact on Business
Asian exporters, manufacturers, and logistics companies face confusion. Push Sharma of Singapore’s Haldy brand had prepared for the US market but paused plans due to shifting policies. "No-one likes uncertainty," Sharma noted, highlighting the investments already made in trademarks and distributor discussions.
Trump’s tariffs aimed to reduce reliance on China but risk reinforcing China's manufacturing dominance instead. Exporters fear the shifting trade policy might solidify Beijing’s grip rather than weaken it.
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New Tariff Measures
The Supreme Court's ruling nullified Trump's tariff strategies, leading him to sign a new 10% global tariff order. Though he threatened to increase it to 15%, the current official rate remains at 10%.
Former trade official Monica Gorman described the new tariffs as a "stop-gap" while the government devises new measures. Industries embedded in Asian networks, like clothing manufacturer Lanna Clothing in Thailand, face rising costs and canceled orders, complicating investment decisions.
Strategic Adaptations
Businesses are responding by diversifying markets. Sharma expanded operations to Malaysia and the Middle East, while Lanna Clothing seeks new customers in Canada, Australia, and Europe. The uncertainty forces companies to rethink strategies, focusing on long-term planning away from volatile US policies.
Logistics Challenges
The legal shifts have left tariffs partly in place, complicating logistics. DHL Global Forwarding Asia-Pacific is monitoring legal developments to assist clients with potential refunds and duty adjustments. FedEx has also filed a lawsuit for tariff refunds.
The China Factor
Despite US policy adjustments, China remains central to Asian manufacturing. Rules tied to "country of origin" mean avoiding Chinese supply chains is difficult. Chinese factories, facing lower US demand, have increased regional prices to maintain operations. China’s production capabilities give it a large-scale advantage, altering global competitiveness.
Future Uncertainties
Trump's upcoming China visit adds to the unpredictability. Changes in US-China trade relations could impact decisions for Asian exporters. While lower global rates might seem beneficial, targeted trade actions may increase sector-specific risks.
As Asian firms adapt to the evolving landscape, many are reshaping supply chains and looking beyond the US market. Uncertainty prevails for businesses, governments, and financial markets globally—each navigating a complex trade environment.
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Adapted by ASEAN Now · Source · 26 Feb 2026