WASHINGTON – The U.S. Supreme Court on Friday invalidated most of the tariffs imposed by the administration of President Donald Trump, dealing a significant blow to his trade policies and prompting a swift response from the White House in the form of a fresh 10% global tariff on all countries.
The 6-3 ruling determined that the Trump administration had overstepped its authority when imposing tariffs on its trading partners. In response, President Trump signed an executive order enacting the blanket 10% tariff, a move that has prompted immediate reactions from across Asia.
Japan indicated that the Supreme Court’s decision would not affect previously agreed-upon investments outlined in a trade deal reached with the U.S. In July. That agreement included commitments valued at 80 trillion yen (approximately $550 billion) and a reduction of tariffs on Japanese products, including automobiles, from 25% to 15%, according to a source cited by the Nikkei newspaper. Initial projects, valued at $36 billion, are considered “necessary for the growth and security” of the Japanese economy and will proceed, the source said.
South Korea affirmed that its trade agreement with Washington, which includes $350 billion in South Korean investment and 15% tariffs from the U.S., remains intact. South Korean authorities convened an emergency meeting to assess the impact of the invalidated tariffs, according to the Yonhap news agency.
Taiwan and Hong Kong both anticipate a “limited” impact from the newly imposed 10% global tariff. Taiwan’s Executive Yuan spokesperson, Michelle Lee, stated that Taipei would “closely monitor” the evolution of U.S. Tariff policy following a recent trade agreement with Washington that reduced tariffs on the island from 20% to 15%. Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, noted that the financial hub’s economy, heavily focused on the service sector, reduces its direct exposure to international trade tensions.
Indonesia, which signed a trade agreement with the U.S. On Thursday, indicated it would initiate “new conversations” with Washington in light of the unfolding situation. Haryo Limanseto, a spokesperson for Indonesia’s Ministry of Economic Affairs, stated that the continuation of the pact, which maintains a 19% tariff on Washington to Jakarta for most goods, remains dependent on decisions from both sides. The agreement also includes $33 billion in purchases of U.S. Products by Indonesia and cooperation on critical minerals and rare earth elements.
Malaysia stated it would “continue diversifying its trade relations and strengthening regional and multilateral economic cooperation” despite the Supreme Court ruling. Washington and Kuala Lumpur signed a trade agreement in October that imposes 19% tariffs on Malaysian products and expands U.S. Access to the country’s rare earth resources.
The legal basis for the new 10% global tariff is limited to increases of up to 15% for periods of 150 days, raising questions about its long-term viability.
