SINGAPORE, April 3 (Bernama) -- The US move to subject imports to wide-ranging tariffs will have a significant impact on Singapore and could escalate into a global trade war, The Straits Times (ST) reported Singapore Deputy Prime Minister Gan Kim Yong as saying.
Gan, who is also Trade and Industry Minister, said Singapore households and businesses must be prepared for rough waters ahead.
He said Singapore is reassessing its growth forecast for 2025 and is prepared to offer support to households and businesses if needed.
Gan noted that while the 10 per cent tariff on goods from Singapore is lower than that imposed on goods from other countries, there will still be an impact on growth if global trade and economic activity slow down significantly.
He said Singapore is disappointed with the US move, given the longstanding economic relationship and the free trade agreement (FTA) between the two countries.
Gan said Singapore will engage with the US to understand how the tariffs were calculated and to clarify any misunderstandings that may have led to the 10 per cent levy.
“The US-Singapore FTA has been a very important FTA for both countries and has benefited the US significantly. US imports to Singapore have enjoyed zero tariffs for more than two decades, and they have also enjoyed a significant, substantial trade surplus with Singapore amounting to S$30 billion,” he said, ST reported.
Gan said that under the FTA, Singapore has recourse to take countermeasures and seek dispute resolution.
"However, we have decided not to do so because imposing retaliatory import duties will just add costs to our imports from the US, and this will affect our consumers and our businesses,” he added.
Gan said Singapore will also engage with other trade partners, particularly ASEAN member countries, to work together to deepen integration, as well as like-minded partners across the world to strengthen the World Trade Organisation (WTO).
On Wednesday, US President Donald Trump signed an executive order that will impose a baseline 10 per cent tariff on all countries, as well as individualised reciprocal higher tariffs on countries with which the United States has the largest trade deficits. These will take effect on April 5 and April 9, respectively.
These tariffs will remain in effect until Trump determines that the threat posed by the trade deficit and underlying non-reciprocal treatment is satisfied, resolved, or mitigated.
-- BERNAMA
