The US Supreme Court's landmark ruling on February 20, 2026, striking down former President Trump's emergency tariffs has reignited debates about America's trade strategy. Despite tariff rates reaching their highest levels since World War II, official data shows the US goods trade deficit soared to $1.24 trillion in 2025 – a 12% increase from 2024 and the largest gap ever recorded.
Analysts note the tariffs failed to achieve their stated goals of reviving domestic manufacturing. "Global supply chains adapted rather than reversed," explained CGTN economic analyst Zhu Zhu. "Many companies simply absorbed higher costs or shifted sourcing to alternative markets in Southeast Asia."
The development carries significant implications for Asian economies. Vietnam and India saw 18% and 14% export growth respectively to the US in 2025, while Chinese mainland exports remained stable through increased high-tech product shipments.
As the Biden administration reviews its trade policy this month, business leaders urge focus on innovation over protectionism. The White House is expected to announce new export control measures targeting advanced semiconductors by mid-March.
