Supreme Court Ruling Adds Confusion
Asian companies did not rejoice when the US Supreme Court last week struck down an important part of Donald Trump’s Tariff Program. The US market was even less accessible for exporters, logistics firms, and manufacturers.
Push Sharma is the founder of Singapore’s wellness brand Haldy. “Nobody likes uncertainty,” he said. The company spent many years planning to enter the American marketplace, but plans were shelved last year. We had already done the trademark registration, background work, and talks with distributors. We had to postpone our plans because everything felt sudden and drastic.
Trump’s tariffs were designed to decrease global dependency on China. Exporters are now warning that constant changes in US trade policies could actually strengthen Beijing’s dominance of manufacturing.
The same trade problems in the New Year
The Supreme Court decided on Friday that Trump did not have legal authority to use emergency powers in order to impose tariffs. The Supreme Court’s ruling effectively nullified billions of dollars in tariffs. In just a few hours, Trump issued an executive order that introduced a 10 percent tariff on imports under legislation that allowed taxes to be imposed for up to 150 days. Later, he threatened to increase it to 15% even though the rate was still 10% when the tariff went into effect.
The State of the Union Address provided little direction for businesses. Trump criticised the court decision but did not offer a clear roadmap.
Monica Gorman said, “This ruling will only increase uncertainty.” Monica Gorman is a former White House official in charge of trade.
Businesses Adapt to Rising Costs
Should we change supply chains before knowing the rules?” “Welcome to the world of tariffs 2026,” said he.
It was a challenging year. Since Trump announced tariffs, manufacturers have faced higher costs. Tomi Makela is the general manager at Thailand’s Lanna Clothing. He said that clients have renegotiated orders or cancelled them due to uncertainty. He added, “I cannot continue to absorb the costs forever so I have to increase prices.”
Sharma highlighted similar concerns. He said that if you do not know the final cost of your products, it is difficult to price them.
Diversifying beyond the US
Some businesses are completely changing their strategies. Sharma’s Haldy expanded into Malaysia and began exploring Middle Eastern markets. Makela has expanded its business in Canada, and is exploring new opportunities in Australia and Europe.
Kok Ping Soon is the CEO of Singapore Business Federation. “Early responses show that uncertainty and not tariff rates themselves, harms business confidence”, he said. Companies can prepare for an increase in costs, but struggle to make decisions when the rules are constantly changing.
