In a commentary, SMU Professor of Law Locknie Hsu shared that a US court ruling against US President Donald Trump’s tariff powers highlights a broader shift toward “US-lateral” trade deals, where the US secures bilateral concessions instead of working within the World Trade Organisation (WTO)’s multilateral system. Prof Hsu said that most partners, including ASEAN, have opted for negotiation over retaliation, with some securing tariff reductions and market access in exchange for purchase commitments. Yet these framework agreements remain legally vague, raising questions about tariff phase-outs, rules of origin, dispute resolution, and WTO compliance. Prof Hsu opined that ASEAN, while continuing to back the multilateral trading system, must balance bilateral deals with the US against its commitment to regional integration and global trade rules.
