"The Singaporean government has voiced disappointment over the United States’ decision to impose a 10% tariff on its exports, despite the long-standin
“The Singaporean government has voiced disappointment over the United States’ decision to impose a 10% tariff on its exports, despite the long-standing economic partnership between the two nations and their free trade agreement (FTA).
Engaging the US for Clarity
By Ovais Subhani
Deputy Prime Minister Gan Kim Yong, speaking on 3 April, confirmed that Singapore will engage with US officials to understand how these tariffs were calculated and address any potential misunderstandings.
“The US-Singapore FTA has played a crucial role in benefiting both countries. For over two decades, US imports to Singapore have been tariff-free, and the US has maintained a trade surplus of $30 billion with us,” he said.
While acknowledging the option of dispute resolution or countermeasures under the FTA, Gan ruled out immediate retaliatory tariffs, stating that such actions would only raise costs for businesses and consumers. Instead, Singapore aims to resolve the issue through diplomatic engagement.
Economic Challenges and Uncertain Growth
The new tariffs come as part of broader trade restrictions imposed by US President Donald Trump on multiple trading partners, sparking concerns over escalating trade tensions worldwide.
“This 10% baseline tariff on Singaporean goods will have a significant effect on our economy,” Gan warned. “Households and businesses must brace for challenging times ahead.”
Singapore is now reassessing its 2025 economic growth forecast and is prepared to introduce support measures if necessary. Gan noted that the full implications of the tariffs are still unfolding, making it crucial to closely monitor developments before making adjustments to economic policies.
Risk of a Global Trade War
While the tariffs on Singapore are lower compared to those on other nations, their broader economic impact could be severe if global trade slows down significantly. Several countries have already signalled plans for retaliatory measures, raising fears of a wider trade conflict.
“If these tit-for-tat tariffs persist, the risk of a global trade war increases,” Gan cautioned. “Such a scenario could disrupt supply chains, reduce consumer and business confidence, and ultimately slow down economic growth worldwide. Singapore’s long-term economic prospects would not be immune to these effects.”
Singapore remains committed to constructive discussions with the US, aiming to prevent further economic strain while safeguarding its trade interests.”
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