Ad Banner
Advertisement by Open Privilege
Singapore

Singapore braces for economic impact as US tariffs loom

Image Credits: UnsplashImage Credits: Unsplash
  • Singapore’s economy faces significant growth risks due to new US tariffs, with outward-oriented sectors like manufacturing and trade expected to bear the brunt of the impact.
  • Government rolls out support measures, including a new task force and Budget 2025 relief, to help businesses and workers adapt while reassessing GDP projections.
  • PM Wong warns of global trade instability, urging regional cooperation (especially within ASEAN) and resilience amid rising protectionism and potential economic fracturing.

[SINGAPORE] Prime Minister Lawrence Wong said the current tariffs imposed by the United States will harm Singapore's economy, businesses, and people. "Singapore may or may not enter recession this year. But I am confident that our growth will be considerably harmed," he said. PM Wong stated that Budget 2025 measures will provide short-term relief, and a new task group will assist in addressing immediate uncertainties while the government continues to monitor the situation.

However, in the short term, global economy is projected to be weaker, resulting in lower foreign demand for Singapore's goods and services, he noted. Outward-oriented industries such as manufacturing, wholesale trade, and transportation will bear the brunt of the damage.

The tariffs come amid a broader shift in global trade dynamics, with the US increasingly favoring protectionist policies under the Trump administration. Analysts warn that such measures could trigger retaliatory actions from other nations, further destabilizing supply chains and investment flows. For Singapore, a trade-dependent economy, the ripple effects could extend beyond immediate sectoral pain, potentially reshaping long-term competitiveness in key industries like electronics and logistics.

PM Wong, who is also Finance Minister, stated in Parliament on April 8 that slower growth will result in fewer job prospects and lower income rises for workers. If additional corporations suffer difficulty or shift their operations back to the United States, there will be more layoffs and job losses.

PM Wong stated that the Trade and Industry Ministry, which had previously estimated GDP growth of 1% to 3% for 2025, is reevaluating "and will most likely revise it downwards". He was making a ministerial speech in reaction to US President Donald Trump's April 2 imposition of a series of worldwide tariffs, including a 10% charge on Singapore. The measures will take effect on April 9.

PM Wong stated that the government will continue to closely monitor developments and is prepared to do more if necessary. “We have the resources to do so because of the financial discipline and prudence we’ve exercised over the decades.”

Economists note that Singapore’s robust fiscal position and substantial reserves provide a critical cushion against external shocks. However, the prolonged uncertainty could dampen investor sentiment, particularly in sectors reliant on US-linked supply chains. The Monetary Authority of Singapore (MAS) has signaled readiness to adjust monetary policy if needed, though inflation remains a secondary concern compared to growth risks in the current climate.

The new task force, directed by Deputy Prime Minister Gan Kim Yong, will help firms and people deal with immediate concerns, increase their resilience, and better adjust to the changing economic environment, PM Wong said.

It will include economic agencies, the Singapore Business Federation, the Singapore National Employers Federation, and the National Trades Union Congress. For the time being, the measures announced in Budget 2025 will help to alleviate any temporary hardship.

These include CDC vouchers, SG60 vouchers, and U-Save refunds to aid with cost-of-living difficulties, while targeted initiatives such as expanded ComCare assistance will benefit the most needy populations.

Workers can also access SkillsFuture, and the involuntarily unemployed will be helped to get back on their feet through the SkillsFuture Jobseeker Support initiative, which will launch later in April, according to PM Wong.

Beyond immediate relief, experts emphasize the need for structural adjustments, such as accelerating digital transformation and diversifying trade partnerships. The Government’s push to deepen regional integration—particularly within Asean—could mitigate some losses, but the pace of adaptation will be crucial. Small and medium-sized enterprises (SMEs), which account for over 70% of Singapore’s workforce, are expected to face the steepest challenges in navigating the new trade landscape.

The Budget also included a number of initiatives to assist businesses, including as corporate income tax breaks, as well as schemes to increase productivity and competitiveness and aid in the transition to new markets.

"Our economic agencies are also engaging the firms impacted by the tariffs to better understand their responses, and see how we can support them, and assist them with any specific issues they face," added Mr. Trump. However, PM Wong added that the situation is still fluid and can change quickly.


Ad Banner
Advertisement by Open Privilege

Read More

Economy Singapore
Image Credits: Unsplash
EconomyMay 9, 2025 at 5:30:00 PM

Indonesia shifts fuel imports from Singapore to US amid tariff negotiations

[WORLD] Indonesia is preparing to reroute a portion of its fuel imports from Singapore to the United States as part of broader negotiations...

In Trend Singapore
Image Credits: Unsplash
In TrendMay 9, 2025 at 4:00:00 PM

Positive prospects in May 2025 for the Snake month

[WORLD] As May 2025 arrives, Chinese astrology places us in the month of the Snake, a time traditionally associated with wisdom, stealth, and...

In Trend Singapore
Image Credits: Unsplash
In TrendMay 9, 2025 at 3:30:00 PM

All you need to know about ginger

[WORLD] From ancient medicine to modern kitchens, ginger (Zingiber officinale) has been cherished for its distinctive flavor and myriad health benefits. This article...

Economy Singapore
Image Credits: Unsplash
EconomyMay 9, 2025 at 1:30:00 PM

Pope Leo XIV holds first Mass

[WORLD] Pope Leo XIV, formerly Cardinal Robert Francis Prevost, celebrated his inaugural Mass as the 267th leader of the Roman Catholic Church today,...

Tech Singapore
Image Credits: Unsplash
TechMay 9, 2025 at 1:00:00 PM

China’s U.S. exports tumble as tariffs escalate

[WORLD] China's exports to the United States experienced a significant downturn in April 2025, plummeting by 21% year-on-year. This sharp decline follows the...

Leadership Singapore
Image Credits: Unsplash
LeadershipMay 9, 2025 at 1:00:00 PM

Manager-employee disconnect undermines workplace morale

[WORLD] A growing number of managers report a more negative outlook on their teams' performance and overall morale than their employees themselves. This...

Finance Singapore
Image Credits: Unsplash
FinanceMay 9, 2025 at 12:00:00 PM

Bursa Malaysia rises on banking and AI sector optimism

[MALAYSIA] Bursa Malaysia rebounded at the opening bell on Thursday, recovering from the previous session’s losses, driven by renewed buying interest in select...

Economy Singapore
Image Credits: Unsplash
EconomyMay 9, 2025 at 12:00:00 PM

Trump optimistic about US-China trade talks

[WORLD] US President Donald Trump stated yesterday that he expects meaningful trade discussions between the US and China to take place this weekend,...

Finance Singapore
Image Credits: Unsplash
FinanceMay 9, 2025 at 10:30:00 AM

Bank Negara signals policy shift

[MALAYSIA]

Finance Singapore
Image Credits: Open Privilege
FinanceMay 9, 2025 at 10:00:00 AM

Ringgit rises on trade optimism amid US dollar strength

[MALAYSIA] The ringgit opened stronger against the US dollar today, buoyed by improved market sentiment stemming from recent developments in global trade tariffs...

Politics Singapore
Image Credits: Unsplash
PoliticsMay 9, 2025 at 10:00:00 AM

The unraveling of the Western world order

[UNITED STATES] The West stands at a pivotal moment in history. The trajectories of civilizations—rising, falling, and evolving—are often shaped by the choices...

Politics Singapore
Image Credits: Unsplash
PoliticsMay 9, 2025 at 10:00:00 AM

Hong Kong must become aware of the perils of US port and maritime concerns

[WORLD] As U.S. President Donald Trump escalates tariffs on Chinese imports, concerns of a deepening trade war cast a shadow over the global...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege