2025-04-08T05:32:00.000Z

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SINGAPORE: Singapore will form a national task force to support businesses and workers in response to sweeping new US tariffs that could slow economic growth and impact jobs and wages, Prime Minister Lawrence Wong announced on Tuesday (Apr 8). The task force, chaired by Deputy Prime Minister Gan Kim Yong, will include representatives from Singapore's economic agencies, the Singapore Business Federation, the Singapore National Employers Federation and the National Trades Union Congress. Describing the global situation as “fluid”, Mr Wong said in a ministerial statement in parliament that the task force will help businesses and workers address immediate uncertainties, strengthen resilience and adapt to a new economic landscape. The tariffs are expected to dampen global growth in the near term, which will hit external demand for Singapore's export-reliant sectors such as manufacturing and wholesale trade. The global uncertainty and dampened sentiment will also impact some services industries, including finance and insurance, said Mr Wong, who is also finance minister. While Singapore “may or may not” slip into recession this year, the economy will be significantly impacted, the prime minister said. The Ministry of Trade and Industry is reviewing its 2025 growth forecast of 1 to 3 per cent, with a likely downward revision. “Slower growth will mean fewer job opportunities and smaller wage increases for workers. And if more companies face difficulties or relocate their operations back to the US, there will be higher retrenchments and job losses,” he said. Beyond immediate concerns, Mr Wong said the tariffs confirm the stark reality that “the era of rules-based globalisation and free trade is over”. US TARIFFS “A FUNDAMENTAL REJECTION” OF WTO RULES The tariffs, announced by US President Donald Trump on Apr 2, impose a universal 10 per cent tariff on all imports into the country, with higher rates for countries deemed to have treated the US "unfairly". Singapore, which currently imposes zero tariffs on US imports, is still subject to the baseline 10 per cent rate. “If the tariffs were truly reciprocal and if they were meant to target only those with trade surpluses, then the tariff for Singapore should be zero. But still we are being subjected to the 10 per cent tariff,” said Mr Wong, pointing out that Singapore runs a trade deficit with the US and maintains open trade through its bilateral free trade agreement. “We are very disappointed by the US move, especially considering the deep and long-standing friendship between our two countries. These are not actions one does to a friend,” the prime minister added.