New US Tariffs
On 2 Apr, the US announced a sweeping 10% tariff on all imports to the US, including Singapore. Despite a Free Trade Agreement and a trade deficit with the US, Singapore is not spared.
Here are some things you should know:
(1) The tariffs add uncertainty to global trade. Singaporean businesses could see higher costs and supply chain disruptions, especially those in multi-country manufacturing chains.
(2) While the tariff on goods from Singapore is less than those on goods from other countries, there will be an impact on Singapore’s economy if global trade and economic activities slow down significantly.
(3) Singapore will not retaliate, as doing so could raise costs for Singapore businesses and consumers.
As a small, open economy built on international trade, Singapore won’t be immune to the impact. While it is still too early to determine the full scope of impact from the current tariff regime, let us stay calm and united and be prepared for rough weather ahead. 💪🏻
Challenges bring opportunities — how should Singapore adapt?
Read more here.
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