Supreme Court ruling leaves Asia trade deals with Trump uncertain
Feb 22nd 2026
Countries that agreed to lower tariffs in return for US investment now face doubt after the court rejected the legal basis for Trump's punitive tariffs, and many agreements remain unratified.
- The Supreme Court struck down the legal basis for the Trump administration's punitive tariffs, creating widespread uncertainty over related trade deals.
- Trump said he would pursue a global tariff of 10 percent and then 15 percent under a different legal approach after the ruling.
- Several Asian governments negotiated lower reciprocal tariffs under threat of much higher levies, including proposed rates up to 35 percent for Japan and 32 percent for Indonesia.
- Japan, South Korea and Taiwan secured 15 percent reciprocal tariffs in exchange for large investment pledges, with recent and pledged amounts reported as Japan $36 billion this week and $550 billion in financing overall, South Korea $350 billion, and Taiwan $250 billion.
- Indonesia, Malaysia and Cambodia agreed to roughly 19 percent tariffs tied to purchases and market openings, leaving them relatively disadvantaged compared with 15 percent deals.
- Many of the bilateral agreements have not been ratified domestically, giving governments legal and political room to revisit or walk back commitments.
- China's economic position in the region means it could gain leverage if US bargaining power is weakened by the court decision.