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Despite legal woes, Trump’s tariffs remain a challenge for South-east Asia

The Supreme Court’s tariff decision introduces new uncertainties, but does not reverse America’s protectionist trend

    • Asean governments should recognise that tariffs are the new normal for doing business with America.
    • Asean governments should recognise that tariffs are the new normal for doing business with America. PHOTO: BT FILE
    Published Thu, Feb 26, 2026 · 01:14 PM

    [SINGAPORE] On Feb 20, the US Supreme Court ruled that US President Donald Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA) were unconstitutional.

    The president criticised the decision and announced a standard universal tariff of 10 per cent – later 15 per cent – under Section 122 of the Trade Act of 1974. 

    The immediate effects on South-east Asian economies were apparent. With the exception of Singapore and Timor Leste, most countries in Asean saw their effective tariff rates decrease.