Asia Braces for Trade Turbulence Amid New U.S. Tariffs

Asian economies are navigating new uncertainties as President Trump's new tariff announcement follows a Supreme Court ruling against his previous levies. The new 10% duty on all U.S. imports, raised to 15%, sparks diplomatic tensions and economic concerns, intensifying trade challenges across the region.

Asian trading partners are grappling with new uncertainties after President Donald Trump announced a fresh 10% tariff on U.S. imports, despite a recent Supreme Court ruling that struck down several of his administration's previous levies. The decision invalidated tariffs on key Asian exporters such as China, South Korea, Japan, and Taiwan, crucial players in global tech supply chains.

The new levies, which Trump later increased to 15%, are set to be in place for 150 days under a different law. Analysts warn this move could signal further measures, leading to increased confusion for businesses and investors. In response, Hong Kong described the tariff situation as a 'fiasco', pointing out the stability and predictability of its trade policies amidst the turmoil.

Japan and Taiwan have expressed concerns over the tariffs, which Japan's Liberal Democratic Party executive described as 'outrageous', fearing they might strain diplomatic relations. Despite the recently invalidated tariffs reducing the U.S. tariff average, the economic impact remains significant, with countries like China, Brazil, and India still facing high tariff levels.

(With inputs from agencies.)