3 days ago
- Business
- Free Malaysia Today
US court ruling won't stop Trump tariffs, says ex-World Bank chief
Ex-World Bank chief Bertrand Badre says Asean nations will secure a better outcome if they negotiate collectively with the US.
ASTANA : A recent US court ruling may delay the implementation of Donald Trump's tariff policy on foreign countries, but is unlikely to halt it entirely, says former World Bank managing director Bertrand Badre.
He said that while the court had found flaws in the procedure used to impose certain tariffs, it did not deem the tariffs themselves unlawful.
'(The court decision) might slow down the process of the tariffs, yes, but I don't think it will change the trajectory.
'Furthermore, the court didn't say that the decision was bad. It's the way they made the decision that was the issue,' Badre told FMT on the sidelines of the Astana International Forum 2025, held in the Kazakhstan capital.
He said the US government may explore different methods for implementing the tariffs.
Badre was a panellist for a discussion titled Trade as a Weapon: The Future of Economic Statecraft, in which experts debated the increasing use of trade policies as geopolitical tools.
Speakers highlighted how high tariffs, economic sanctions, and strategic trade restrictions were reshaping global economic dynamics.
Badre, CEO of BlueOrange Sustainable Capital, said the case would likely be brought before the US Supreme Court, potentially leading to greater uncertainty.
'(Importers would have) already paid something (in the form of tariffs), the goods have been sold in supermarkets already with a higher price, so it's tough to kind of unwind the whole process,' he said.
He added that the situation is particularly challenging for businesses unfamiliar with the complexity of the US legal system.
'Most businesspeople are not familiar with the US judicial system.'
Badre also urged Asean nations to negotiate collectively with the US, rather than individually.
'If Vietnam goes on its own, then Malaysia, then Singapore, etc, that is not so great,' he said.
'The stronger you are together, the better. That is, to me, the critical point.'
He warned that the ruling would complicate ongoing trade discussions.
'It adds to the negotiation process for sure. There is a risk that it will not go through. But still, you are in the negotiation process. So it will make the negotiation even more complex,' he added.
Timur Turlov.
During the forum, Timur Turlov, CEO of Freedom Corp, cautioned that a prolonged trade war could erode trust and confidence among major economies.
'It has not yet been disrupted because it has been built over time. But if we distrust the confidence long enough it would be difficult to rebuild,' said Turlov, who was recently recognised as Kazakhstan's richest man by Forbes' World Billionaires.
He said trust and confidence in trade relations was a 'great treasure' of developed nations.
'We have seen market reaction with stock markets going up and down and try to react to this new style of global policy but buying and selling (it) is losing value (of doing business),' he added.
Daniel Runde, senior vice president and director at the Center for Strategic and International Studies (CSIS), noted that Trump remains popular among American voters, particularly for his stance on migration.
'Right now he remains the popular president. But let's see how we are in six months if the prices of Mercedes Benz and others will go up. Let's see how the US reacts,' he said during the forum.
