SINGAPORE — Singapore is gearing up for the effects of a sweeping new tariff regime introduced by the United States, with Deputy Prime Minister Gan Kim Yong emphasising the importance of preparation in this rapidly evolving landscape. On 21 February 2024, US President Donald Trump announced an increase in global tariffs from 10 per cent to 15 per cent on imports, signalling a significant shift in international trade dynamics.
Understanding the New Tariffs
The imposition of this new tariff rate is expected to affect all countries, including Singapore, according to DPM Gan. “This increase is a stark reminder that we’re now facing a very unpredictable and uncertain operating environment,” he remarked during a media interview at One Punggol Community Centre.
- The tariffs stem from a recent US Supreme Court ruling that invalidated previous tariff policies.
- Key exceptions to the tariffs include energy products, pharmaceuticals, and some electronics.
- Implementation details remain unclear, as the Ministry of Trade and Industry (MTI) seeks clarification from US authorities.
The Path Forward for Singapore
DPM Gan highlighted that the government is actively monitoring the situation and will engage with both businesses and workers to assess the potential impacts. “In all likelihood, this new 15 per cent across-the-board tariff will be applicable to Singapore, so we need to prepare for the impact,” he stated.
To mitigate the effects, the government is ready to introduce support measures for companies and households. DPM Gan mentioned initiatives such as:
- Corporate Income Tax rebates to assist in managing costs.
- Enhanced grant support levels for various assistance schemes.
According to the US Census Bureau, Singapore experienced a trade surplus of US$3.6 billion with the US in 2025, surpassing the previous year’s surplus of US$1.9 billion. This indicates the robust economic ties that will be critical as Singapore navigates these new tariffs.
Adaptability is Key
Looking ahead, DPM Gan urged businesses to remain adaptable and explore opportunities in new markets and sectors that may be less affected by the tariffs. He cautioned against assuming that Singapore might soon be exempt from the levies, stressing the importance of anticipating a prolonged period of uncertainty in the trade environment.
Ultimately, the situation calls for resilience and strategic planning as Singapore adjusts to these changes in global trade dynamics.