WASHINGTON, 1 September 2025 – U.S. President Donald Trump issued a stark warning over the weekend, claiming that the United States could suffer a steep economic decline—becoming akin to a “third-world nation”—if federal courts ultimately annul the sweeping tariffs his administration imposed. His remarks follow a court decision declaring most of those tariffs unlawful.
Trump vigorously defended his tariff program on Truth Social, asserting that “more than $15 trillion will be invested in the U.S., a record,” and emphasizing that much of this investment hinges on maintaining the tariffs. He criticized the judiciary, calling the decision a move by a “Radical Left Court” that threatens “almost all… investment” and warns, “we would become a Third World Nation, with no hope of GREATNESS again.”
These comments follow a significant decision from the U.S. Court of Appeals that deemed the tariffs—enacted under emergency powers via the International Emergency Economic Powers Act (IEEPA)—exceeded presidential authority. Although the tariffs remain in force, their future now hinges on a Supreme Court review before mid-October.
Southeast Asia and Global Context
Trump’s claim highlights how deeply tariffs are interwoven with broader economic optimism—and how central they are to his vision of American resurgence. In Southeast Asia, government and business leaders are closely watching U.S. trade policy, as fluctuations in tariffs could ripple through supply chains—from Malaysian electronics exporters to Thai auto assemblers.
A weakening U.S. economy, or pronounced policy uncertainty, could disrupt investor confidence across ASEAN economies. The threat of retaliatory action or policy reversals carries implications for regional financial markets and trade routes.
