SINGAPORE: While Singapore was hit with the lowest level of tariffs - 10 per cent - in sweeping new levies announced by the United States, the impact will be significant, said Singapore Deputy Prime Minister Gan Kim Yong on Thursday (Apr 3).
"I think our households and our businesses have to be prepared for rough waters ahead of us, and they will significantly impact our business as well as households," said Mr Gan, who is also the trade and industry minister.
"We will continue to monitor the situation, and if necessary, we will introduce more measures to help our households and our businesses."
In February, official forecasts put Singapore's growth for 2025 at 1 to 3 per cent but this will now need to be relooked, said Mr Gan.
"We are at the moment reassessing our economic forecast, and we may need to make adjustments in time to come," he told a media conference.
Expressing disappointment with the tariffs, Mr Gan said Singapore could have chosen to take countermeasures under a free-trade agreement in force since 2004, but will not do so.
"Retaliatory import duties will just add cost to our imports from the US … and this will affect our consumers and our businesses," he said
Mr Gan said Singapore will try to engage the US at multiple levels to understand President Donald Trump's areas of concern and see if they can be resolved.
"We'll be engaging at the ministerial level, at the official level. Ambassadors in the US will also be engaging them, and our businessmen will also be engaging their private sector," said Mr Gan.
"If there are no specific concerns, then it's more difficult to argue or to negotiate."
The US had a goods trade surplus of US$2.8 billion (S$3.74 billion) with Singapore last year, an 84.8 per cent increase over 2023, according to the United States Trade Representative website.
Mr Gan said Singapore will have to double down on its efforts to continue to keep its economy open and uphold open, fair and free trade among like-minded countries.
He added the country is working with its partners to strengthen the World Trade Organization (WTO), as it is "very important for us to make sure that we continue to strengthen and preserve the multilateral system to the extent possible, because this will provide the basis for collaboration for international trade under rules-based order".
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"I think our households and our businesses have to be prepared for rough waters ahead of us, and they will significantly impact our business as well as households," said Mr Gan, who is also the trade and industry minister.
"We will continue to monitor the situation, and if necessary, we will introduce more measures to help our households and our businesses."
In February, official forecasts put Singapore's growth for 2025 at 1 to 3 per cent but this will now need to be relooked, said Mr Gan.
"We are at the moment reassessing our economic forecast, and we may need to make adjustments in time to come," he told a media conference.
Expressing disappointment with the tariffs, Mr Gan said Singapore could have chosen to take countermeasures under a free-trade agreement in force since 2004, but will not do so.
"Retaliatory import duties will just add cost to our imports from the US … and this will affect our consumers and our businesses," he said
Mr Gan said Singapore will try to engage the US at multiple levels to understand President Donald Trump's areas of concern and see if they can be resolved.
"We'll be engaging at the ministerial level, at the official level. Ambassadors in the US will also be engaging them, and our businessmen will also be engaging their private sector," said Mr Gan.
"If there are no specific concerns, then it's more difficult to argue or to negotiate."
The US had a goods trade surplus of US$2.8 billion (S$3.74 billion) with Singapore last year, an 84.8 per cent increase over 2023, according to the United States Trade Representative website.
Mr Gan said Singapore will have to double down on its efforts to continue to keep its economy open and uphold open, fair and free trade among like-minded countries.
He added the country is working with its partners to strengthen the World Trade Organization (WTO), as it is "very important for us to make sure that we continue to strengthen and preserve the multilateral system to the extent possible, because this will provide the basis for collaboration for international trade under rules-based order".
Continue reading...