New US tariffs hit Singapore, potentially triggering global trade war - TPM Singapore
03/04/2025
Gan said households and businesses in Singapore needed to be prepared for more challenging economic uncertainties. - Reuters Image
SINGAPORE: The United States' move to impose sweeping tariffs on imports will have a significant impact on Singapore and could trigger a global trade war, The Straits Times (ST) reported citing Singapore's Deputy Prime Minister Gan Kim Yong.
Gan, who is also the Trade and Industry Minister, said households and businesses in Singapore need to be prepared for more challenging economic uncertainties.
He said Singapore was reassessing its growth projections for 2025 and was ready to offer support to households and businesses if needed. Gan said although the 10 per cent tariff imposed on goods from Singapore is lower than in other countries, economic growth will still be affected if global trade and economic activity decline significantly.
He also expressed Singapore's frustration with the US move, given the long-standing economic ties and the free trade agreement (FTA) between the two countries.
Gan said Singapore would consult with the US to understand the method of calculating the tariff and clarify any misunderstandings that might lead to the imposition of the 10 per cent rate.
"The US-Singapore FTA agreement is a very important agreement for both countries and has benefited the US immensely.
"US imports to Singapore have enjoyed zero tariffs for over two decades, and the US also earns a large trade surplus with Singapore, amounting to S$30 billion," he said, according to an ST report.
Under the FTA, Singapore has the right to take countermeasures and resolve disputes formally.
"However, we choose not to do so because imposing reciprocal import duties will only add costs to our imports from the US, which will ultimately impact our consumers and businesses," he said.
Singapore will also consult with other trading partners, especially ASEAN member states, to strengthen regional integration as well as work with global trading partners to strengthen the World Trade Organization (WTO).
On Wednesday, U.S. President Donald Trump signed an executive order to impose a 10 percent base tariff on all countries, in addition to individually higher tariffs on countries with the largest trade deficit with the U.S.
The tariffs will take effect on April 5 and 9, respectively.
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