Southeast Asia caught between relief and new risks after US court strikes down Trump tariffs

Southeast Asian countries could benefit from a temporary lowering of tariffs, but analysts warn there are other means United States President Donald Trump can use to keep his trade agenda alive. Advertisement analysis Asia Southeast Asia caught between relief and new risks after US court strikes down Trump tariffs Southeast Asian countries could benefit from a temporary lowering of tariffs, but analysts warn there are other means United States President Donald Trump can use to keep his trade agenda alive. A woman looks at shoes at a store in Tangerang, Indonesia, on Jul 20, 2025. Indonesia is among the top countries supplying footwear to the United States. (Photo: CNA/Ridhwan Siregar) New: You can now listen to articles. This audio is generated by an AI tool. Nivell Rayda Nivell Rayda 26 Feb 2026 06:00AM Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST JAKARTA: A temporary reprieve, or fuel on an already heated political landscape? The United States Supreme Court’s recent ruling on President Donald Trump’s tariffs is being cast in starkly different lights across Southeast Asia, say experts. Analysts say the decision is poised to send uneven shockwaves through the region, with its political and economic fallout likely to play out differently across different countries, from Bangkok to Manila.“The only thing certain is that there will be uncertainty,” Lawrence Loh of the National University of Singapore (NUS) Business School told CNA, adding that the Supreme Court judgment would not stop Trump from seeking other means to keep his trade agenda alive.Last Friday (Feb 20), the US Supreme Court ruled that Trump’s use of the International Emergency Economic Powers Act to impose reciprocal tariffs last year without congressional approval was unconstitutional.The court’s decision prompted Trump to invoke a different law to sign an order imposing a global 10 per cent duty on goods imported into the US. Trump has announced that he intends to raise the rate to 15 per cent, but he has not yet formalised that with a new directive. The sweeping 10 per cent tariff, which came into effect on Tuesday, is however temporary and can only last 150 days before Congress either extends the timeframe or steps in. Subscribe to CNA’s Morning Brief An automated curation of our top stories to start your day. This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners. Loading US President Donald Trump speaks during a press briefing at the White House after the Supreme Court ruled against his use of emergency powers to implement international trade tariffs on Feb 20, 2026 in Washington, DC. (Kevin Dietsch/Getty Images/AFP) Analysts said most Southeast Asian countries are likely to see the court ruling as a reprieve, as nearly all had previously been slapped with tariffs of at least 19 per cent. Businesses in these economies, they added, could enjoy a temporary lift as exporters move quickly to take advantage of the lower duties.Singapore is the only Southeast Asian country to have seen its tariff rate remain in recent days, standing at the original 10 per cent.However, Deputy Prime Minister Gan Kim Yong recently urged the country to prepare for a fundamentally changed global trade environment."It is important for us to continue to remind ourselves ... we need to prepare for the long term, and this is the new world that we are facing," he said.Meanwhile, countries that have already inked reciprocal trade agreements with Washington in their months-long efforts to seek reduced tariff rates from those first announced in April 2025 are facing mounting pressure from political opponents and critics at home to renegotiate for more favourable terms.Loh of NUS said that those attempting to capitalise on the ruling should note that the situation could change again soon, as Trump could use other legal provisions to get his tariffs in place. The temporary 10 per cent tariff was imposed using section 122 of the US Trade Act of 1974 which authorises the president to impose temporary import surcharges of up to 15 per cent when the US faces a serious balance-of-payments deficit or rapid dollar depreciation.Trump has also authorised the United States Trade Representative to launch an investigation against practices that burden or restrict US commerce under Section 301 of the same trade act and take necessary actions, including tariffs, quotas and other restrictions to counter such practices. The US president could also resort to using non-trade barriers such as import quotas, strict licensing or complex rules of origin more aggressively.“The pursuit of trade restrictions in whatever form by the US presidency is relentless and probably unstoppable,” said Loh. Related: IN FOCUS: Why Southeast Asia’s s