<\/p>\nUS Supreme Court ruled<\/p>\n
<\/a> on Feb 20 that the US President did not have the power to impose his tariffs under a law intended for use in national emergencies. Mr Trump had used the Act to announce the sweeping global tariffs in April 2025, ranging from 10 per cent to 50 per cent on goods coming into the United States.<\/p>\n
In response, Mr Trump immediately announced a 10 per cent global tariff on US imports from all countries for 150 days, using another trade Act. Just a day later, he said he would raise that temporary tariff to 15 per cent, the maximum allowed under the Act.<\/p>\n
Analysts noted that it was not yet clear when Mr Trump\u2019s new tariffs would be imposed, what might be excluded,\u00a0and\u00a0whether every country would be hit with the 15 per cent. Some, including Singapore and\u00a0Australia, had 10 per cent tariff rates under the former rules, while many countries in Asia like India and China had higher rates.<\/p>\n
Mr Daniel Siluk, Janus Henderson Investors\u2019 head of global short duration and liquidity, struck an upbeat note: \u201cFor markets, the ruling modestly reduces US trade policy uncertainty by limiting the President\u2019s ability to impose abrupt, executive-driven tariffs. <\/p>\n
\u201cWe view this as mildly supportive for global risk sentiment and trade-exposed sectors, even if it does not signal a wholesale reversal of the recent trend towards US protectionism.\u201d<\/p>\n
He added that the decision underscores a shift towards slower, more procedurally constrained trade policy.<\/p>\n
But Mr Brian Levitt, chief global market strategist at Invesco, said that despite the US Supreme Court striking down the tariffs, overall US tariff levels are unlikely to decline substantially. <\/p>\n
\u201cOther statutes grant the President broad authority to impose tariffs, meaning those previously enacted could simply be reimposed under different legal frameworks,\u201d he said. \u201cThis is why the markets\u2019 initial reaction to the ruling may ultimately be short-lived.\u201d<\/p>\n
Rystad Energy chief economist Claudio Galimberti agreed that the ruling does not dismantle the broader tariff framework, but it might weaken the US\u2019 ability to target individual countries. <\/p>\n
He added that if the upper limit of the 15 per cent tariffs is reached, this might raise the average tariff rate across the board to even higher than under the previous structure that the court struck down.<\/p>\n
\u201cThe stick is now the same size for everyone, and it is a little smaller,\u201d he said, although he noted that renegotiation is back on the table.<\/p>\n
\u201cThe current result of the Supreme Court\u2019s ruling is not a reversal of protectionism, but a narrower, more legally constrained US tariff regime.\u201d<\/p>\n
Ms Lorraine Tan, Morningstar\u2019s director of equity research for Asia, also said she anticipated a muted reaction from the markets because limited changes are expected to the agreements already in place.<\/p>\n
She noted that steel and auto were not part of the strike down by the court, and pharmaceuticals and semiconductors remain exempt from tariffs for now. <\/p>\n
\u201cWhile this does add uncertainty, I don\u2019t think it is so huge as to lead to knee-jerk market reactions,\u201d she said. <\/p>\n
However, Eastspring Investment analysts Vis Nayar and Ray Farris said in a report that the court\u2019s decision is ultimately beneficial for Asia. <\/p>\n
\u201cIt should make arbitrary threat and imposition of tariffs by the US President more difficult \u2013 other tariff facilities generally require lengthy investigations. It also establishes a precedent for challenging tariff justification under law,\u201d their report said. <\/p>\n
But the report added that although there is a \u201creasonable chance\u201d that overall tariff rates will fall later in 2026, tariff rates on specific sectors and products may rise. <\/p>\n
Deputy Prime Minister Gan Kim Yong said on Feb 22 that the Singapore Government will engage its US counterparts to seek clarity on the implementation of the potential new 15 per cent tariff.<\/p>\n
But he also noted that if the 15 per cent minimum tariff is applied across the board, it would be very difficult for Singapore to negotiate for exemptions.<\/p>\n
\u201cThe key word really is uncertainty, because it\u2019s not clear how it\u2019s going to be implemented,\u201d he said.<\/p>\n<\/div>\n
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