The US Supreme Court decision to strike down president Donald Trump’s sweeping global tariffs removes one major trade overhang for Malaysia.
Economists said the ruling could be a sigh of relief for local exports and industry associations but caution remains as US trade policies are still subject to political change.
They added that it does not end the possibility of future US trade actions that could affect Malaysia and rest of the world.
In a 6-3 ruling over the weekend, the Supreme Court held that Trump did not have the legal authority under the International Emergency Economic Powers Act (IEEPA) to impose broad-based import tariffs on most US trading partners.
Under the IEEPA, Trump enacted his infamous sweeping reciprocal tariffs globally as well as fentanyl tariffs imposed on China, Canada and Mexico.
The justices reaffirmed that the constitutional power to levy tariffs rests with Congress, not the president acting unilaterally.