Asian economies assess impact of fresh Trump tariff moves, confusion

The court struck down several Trump-era tariffs on Asian export giants, China, South Korea, Japan, and Taiwan, key players in tech supply chains and the global chip market

US trading partners in Asia began weighing fresh uncertainties on Saturday after President Donald Trump vowed to impose a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he had used to launch a global trade war.

 

The court invalidated a number of tariffs the Trump administration had imposed on Asian export powerhouses, from China and South Korea to Japan and Taiwan, key players in global tech supply chains and the world’s largest chip markets.

 

Within hours, Trump announced a new 10 per cent duty on US imports from all countries starting Tuesday for an initial 150 days under a different law. Analysts warned this could be the first of several measures, creating further confusion for businesses and investors.

 

 

In Japan, a government spokesman said Tokyo “will carefully examine the content of this ruling and the Trump administration's response to it, and respond appropriately.” China, preparing to host Trump in late March, has yet to comment or take countermeasures during its extended holiday. A senior financial official in Hong Kong described the US situation as a “fiasco.”

 

Christopher Hui, Hong Kong’s secretary for financial services and the treasury, said Trump’s new levy highlighted Hong Kong’s “unique trade advantages.” “This shows the stability of Hong Kong’s policies and our certainty ... it shows global investors the importance of predictability,” he said.

 

Hong Kong operates as a separate customs territory from mainland China, shielding it from direct exposure to US tariffs on Chinese goods. While duties have targeted mainland exports, Hong Kong-made products have generally faced lower rates, allowing the city to maintain trade flows amid rising Sino-US tensions.

 

Before the Supreme Court ruling, Trump’s tariffs had strained Washington’s relations across Asia, particularly with export-reliant economies integrated into US-bound supply chains. The ruling concerns only tariffs imposed under the International Emergency Economic Powers Act (IEEPA), intended for national emergencies.

 

Trade policy monitor Global Trade Alert estimated the ruling cut the trade-weighted average US tariff almost in half, from 15.4 per cent to 8.3 per cent. For countries facing higher US tariffs, the reduction is more dramatic. For China, Brazil, and India, it represents double-digit percentage point cuts, though rates remain high.

 

Taiwan said it was closely monitoring the situation, noting the US had yet to determine how to implement trade deals with many countries. “While the initial impact on Taiwan appears limited, the government will maintain close communication with the US to understand specific implementation details and respond appropriately,” a cabinet statement said. Taiwan recently signed two deals with the US, including a Memorandum of Understanding committing $250 billion in investments and a reciprocal tariff-lowering agreement.

 

More confusion

 

Analysts warned the Supreme Court ruling may offer little relief for the global economy, with trading nations bracing for Trump to seek other ways to impose levies. Thailand’s Trade Policy and Strategy Office head Nantapong Chiralerspong said the ruling could even boost exports as uncertainty prompted “front loading,” where shippers rush goods to the US ahead of potential higher tariffs.

 

Corporate disclosures tracked by Reuters show firms across Asia-Pacific reported financial impacts, supply chain shifts, and withdrawals as tariffs escalated through 2025 and early 2026.