Asia faces $621 bn tariff risk as US expands national security trade curbs
As the Supreme Court reviews Trump's tariffs, the US is expanding Section 232 duties that could affect $621 billion in Asian goods, raising risks for allies and rivals alike
 "Asia faces $621 bn tariff risk as US expands national security trade curbs")
As the US Supreme Court weighs the future of President Donald Trump’s reciprocal tariffs, Washington is expanding another powerful trade weapon. A separate set of duties imposed on national security grounds could hit Asian exports worth up to $621 billion if fully enforced, according to a report by Nikkei Asia.
Even if the top court strikes down the reciprocal tariffs, the White House still has wide latitude to levy duties under existing trade laws. These measures, already in use across multiple sectors, pose serious risks for both rivals and close US allies in Asia.
Supreme Court ruling looms over tariff policy
The Supreme Court is expected to rule on the legality of Trump’s reciprocal tariffs, a central part of his trade strategy. A negative verdict would be a major setback for the administration. Trump has argued that refunding more than $200 billion already paid by importers would create a “complete mess”.
But the administration has other options. Chief among them is Section 232 of the Trade Expansion Act of 1962, which allows tariffs on specific products if imports are deemed a national security threat.
The Trump administration launched 14 Section 232 investigations last year, covering products such as machinery, critical minerals, pharmaceuticals and automobiles. Nikkei Asia found that Trump alone accounts for 40 per cent of all such probes since the law came into force more than six decades ago.
He became the first president in 2017 to actually impose tariffs under Section 232 and has relied heavily on the provision since. In his current term, these tariffs cover steel, aluminium, cars, furniture, kitchen cabinets, copper and semiconductors -- all outside the Supreme Court case.
Asian trade partners face major exposure
China is the most vulnerable Asian economy, with $142 billion worth of goods exposed to existing or pending Section 232 actions. Japan follows with $107 billion, while South Korea faces risks of about $102 billion in exports.
Even countries with US free trade agreements are not fully protected. While some, including Japan and South Korea, have negotiated fixed tariffs in certain sectors, those deals may not apply to future probes.
Steel, aluminium and copper
Steel and aluminium imports now face 50 per cent tariffs, up from 25 per cent earlier last year. The US imports half its aluminium and a quarter of its steel, with Canada as the top supplier. China leads among Asian exporters, followed by Japan and South Korea, the news report said.
Copper imports were hit with a 50 per cent tariff in August. China was the largest supplier, mainly through copper-based electrical products, followed by Vietnam.
Wood products face duties ranging from 10 per cent to 25 per cent, affecting furniture, cabinets and vanities. Vietnam and China together account for over one-third of affected imports.
Imported cars and auto parts now face 25 per cent tariffs, though Japan and South Korea secured a reduced 15 per cent rate under trade deals. Even so, Japanese automakers reported a $9.7 billion earnings hit last year as costs rose, the news report said.
Medium- and heavy-duty trucks are also subject to 25 per cent duties, while buses face a 10 per cent levy. Although most vehicles are assembled domestically, manufacturers rely on imported steel and aluminium.
High-tech sectors under scrutiny
Semiconductors now face 25 per cent tariffs on advanced chips. Taiwan and Malaysia were the biggest suppliers in 2024, while Vietnam led in diodes and photosensitive devices. Chipmaking equipment mainly came from Singapore and Japan.
The administration is also reviewing wind turbines, robotics, drones, pharmaceuticals, medical supplies and critical minerals. The US depends entirely on imports for 12 critical minerals and relies on China for 70 per cent of rare-earth supplies.