Priyanka Tiwari
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Amid rising global trade tensions triggered by US President Donald Trump's sweeping tariffs, Singapore has established a national task force to address the economic impact on businesses and workers. Announced in Parliament on Tuesday by Prime Minister Lawrence Wong, the task force will be chaired by Deputy Prime Minister Gan Kim Yong and include representatives from:
Singapore Business Federation
Singapore National Employers Federation
National Trades Union Congress
Key economic agencies
Impact on Singapore's Economy and Jobs
The newly imposed 10% import duty on all US imports, including those from countries with no trade surplus, has raised alarm across Singapore’s export-driven economy. Though Singapore imposes zero tariffs on US goods and runs a trade deficit with the US, it has still been included under the baseline tariff.
Wong warned that the tariffs could:
Slow down GDP growth
Reduce job opportunities
Lead to smaller wage increases
Cause higher retrenchments if companies relocate or reduce operations
The Ministry of Trade and Industry is reviewing its 2025 growth forecast (currently at 1-3%) and may revise it downward due to the expected slowdown.
PM Wong Criticizes US Tariff Policy
In his ministerial statement, Wong called the tariffs a “fundamental rejection” of WTO principles, especially the Most Favoured Nation rule, which ensures equal treatment for all members. He described the shift as the end of the rules-based globalisation era, warning:
“Selective trade practices risk unraveling the global trading system, and that will hurt smaller nations the most.”
He also rejected the US rationale for targeting trade deficits, noting that the US runs a surplus in services such as software, education, and finance, which are excluded from the tariff calculus.
Global Repercussions and Risk of Recession
Wong said the tariffs have already:
Shaken stock markets
Dampened global business confidence
Increased uncertainty in trade and investment
Singapore's agencies are engaging with multinational and local businesses to assess the impact and avoid the risk of stranded assets due to disrupted supply chains.
He cautioned:
“There is a real risk that these measures could tip the US and global economy into a recession.”
Support Measures and ASEAN Coordination
To cushion the blow, Singapore has introduced:
Corporate income tax rebates
Schemes for productivity and competitiveness
Market diversification programs
Wong emphasized the importance of ASEAN economic cooperation and cited recent talks with Malaysian PM Anwar Ibrahim. ASEAN ministers are planning a special meeting to enhance intra-regional trade and reaffirm commitment to economic integration.
US-China Tensions and Rising Protectionism
Wong also expressed concern over the deteriorating US-China relations, which he said lack “guardrails” for managing disputes. He warned of a ripple effect as other nations, including those in Europe, may impose similar protectionist tariffs.
“These tariffs may just be the beginning of more increases to come globally.”
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