TRUMP TARIFFS IN FOCUS AHEAD OF KEY US COURT DECISION

By Norsyafawati Ab Wahab

KUALA LUMPUR, Jan 14 (Bernama) -- Countries across the globe, including Malaysia, await the US Supreme Court ruling later today on the reciprocal tariff imposed by President Donald Trump. 

The court is expected to issue its decision at 10 am US Eastern time (11 pm in Malaysia) today, after delaying it last week.

Trump posted on his Truth Social platform yesterday that an adverse ruling could force the United States to refund hundreds of billions of dollars.

He said the numbers excluded the amount of “payback” that countries and companies would require for the investments they are making in building plants, factories, and equipment to avoid paying tariffs. 

Khazanah Research Institute chairman Dr Nungsari Ahmad Radhi said that while Trump used executive powers, backed by some Congressional approval, to impose tariffs, the Supreme Court will have the final say.

“The Supreme Court is like our Federal Court. It considers constitutional matters whose decision the executive and even the legislative branch must comply with,” he told Bernama.

Meanwhile, Sunway University economist Dr Yeah Kim Leng noted that even if the court issues an adverse ruling, Trump could still pursue unilateral trade measures.

He said Trump could rely on existing laws, such as Section 201 on global safeguards and Section 122 on balance-of-payments issues.

“He could also work with the Congress to pass new legislation under the ambit of defending American jobs and industries.

“Though more arduous and complex, he could also resort to administrative and regulatory tools to enact non-trade barriers against the targeted countries,” he said.

On April 2, 2025, US President Donald Trump signed Executive Order 14257, known as the “Liberation Day Tariffs,” imposing a ten-per-cent baseline tariff on most imports, including Malaysian goods.

As US authorities claimed Malaysia imposed a 47-per-cent tariff on US imports, this prompted a reciprocal 24-per-cent tariff on most Malaysian exports to the US from April 9, 2025, with some exemptions.

While Malaysia was not alone, other countries like Japan and Brunei faced the same 24-per-cent tariff, with some encountering higher rates -- China at 34 per cent, Vietnam at 46 per cent, Cambodia at 49 per cent and Indonesia at 32 per cent.

After several rounds of negotiations, the talks officially concluded on July 31, 2025, with the US agreeing to reduce the reciprocal tariff on Malaysian exports, subject to finalisation of the agreement.

On Aug 1, 2025, the US lowered its reciprocal tariff on Malaysian exports to 19 per cent from 25 per cent, with semiconductor and pharmaceutical exports exempted.

On Oct 26, 2025, Malaysia and the US signed the landmark Agreement on Reciprocal Trade (ART) during the 47th ASEAN Summit in Kuala Lumpur, exempting 1,711 Malaysian exports from the 19-per-cent tariff.

-- BERNAMA