Unless you live under a rock, you’d know about the sweeping new US tariffs that everyone is talking about.
The tariffs, announced by US President Donald Trump on 2 April, impose a universal 10 percent baseline tariff on all imports into the United States, including those from Singapore.
There will be reciprocal tariffs of up to 49% on other countries (or a whopping 104% reciprocal tariffs on China).
Here’s the latest update about what has happened, and yes: it’s going to be tough ahead.
Singapore’s Initial Response
Lest you’re not aware, the unprecedented tariffs will cause prices of goods to increase, even when Singapore is just hit with a baseline tariff of 10% despite us having a trade surplus with the US.
Upon Trump’s announcement on Liberation Day, PM Lawrence Wong addressed the nation in a video, warning us that the global calm and stability that once existed will not return anytime soon, and urging us to stay resolute and united.
The Leader of the Opposition, Workers’ Party chief Pritam Singh, agrees with PM Wong, calling it “another strait of uncharted waters.”
However, Progress Singapore Party (PSP) chairman Tan Cheng Bock took a different stance, suggesting on Sunday that the government’s warnings about the tariffs were “partly to instil fear in the voter,” adding that these tariffs are still in their early stages and “must be studied carefully”.
But given the severity of the issue, the Government isn’t taking a “wait-and-see” approach—instead, it’s explaining the situation while taking concrete steps to address the impending problem.
What Singapore Will Do
PM Wong announced on 8 April 2025 that Singapore will form a national task force to support businesses and workers in response to sweeping new US tariffs that could slow economic growth and impact jobs and wages.
The new task force, chaired by Deputy Prime Minister Gan Kim Yong, will include representatives from Singapore’s economic agencies, the Singapore Business Federation, the Singapore National Employers Federation, and the National Trades Union Congress.
During his ministerial statement in parliament, PM Wong expressed deep disappointment at Singapore’s inclusion in the tariff regime despite the country’s zero tariffs on US imports and its trade deficit with America.
“We are very disappointed by the US move, especially considering the deep and long-standing friendship between our two countries. These are not actions one does to a friend,” PM Wong said.
PM Wong warned that the tariffs would dampen global growth and hit Singapore’s export-reliant sectors such as manufacturing and wholesale trade.
The Ministry of Trade and Industry is reviewing its 2025 growth forecast of 1 to 3 percent, with a likely downward revision.
“Slower growth will mean fewer job opportunities and smaller wage increases for workers. And if more companies face difficulties or relocate their operations back to the US, there will be higher retrenchments and job losses,” PM Wong cautioned.
The Workers’ Party (WP) echoed the government’s concerns, calling for immediate bilateral negotiations with the US.
Unlike some countries considering retaliatory measures, Singapore will not impose counter-tariffs on US imports.
“Imposing retaliatory import duties will just add costs to our imports from the US, and this will affect our consumers and businesses,” DPM Gan has explained in a statement last Thursday.
Instead, Singapore will engage with US counterparts to better understand their concerns and work together constructively.
PM Wong stated that measures announced in Budget 2025 will provide support for any short-term strain on businesses and workers, and the government “stands ready to do more, if and when necessary”.
Business confidence has already been affected by the tariffs. Some companies have put new projects on hold while they assess the full implications of the measures.
This could, of course, affect our job security, especially so when there are so much uncertainty.
Now, how about consumers?
A flash survey by the American Chamber of Commerce in Singapore found that 45 percent of companies plan to pass on the higher prices from US tariffs to their customers.
PM Wong described the tariffs as a “fundamental rejection” of World Trade Organization principles that have long been “the bedrock of the multilateral trading system”.
He warned that if other countries adopt the same approach, the rules-based trading system will unravel – a reality that would particularly hurt smaller countries like Singapore with limited bargaining power in bilateral negotiations.
Thankfully, Singapore now has a well-established reputation for political stability, reinforcing its position as a secure and reliable economy, and a stable government is much more important now; it’ll play an important role in maintaining consistent policies to navigate global economic changes, like what has just happened.
So, like what PM Wong said…let’s stay united.
