Singapore’s Prime Minister Lawrence Wong has spoken out against U.S. President Donald Trump’s decision to place a 10% universal tariff on goods from Singapore.
Wong said this move could badly affect Singapore’s economy and warned that it may lead to slower growth, job losses, and global trade tensions. Let’s take a closer look at what’s happening and why it matters.
What Is the 10% Universal Tariff?
President Trump has introduced a new trade policy that puts a 10% universal tariff on imports from countries including Singapore. This means that all goods entering the U.S. from Singapore will now be taxed at 10%, no matter what trade deals or past agreements exist.
The U.S. says this is part of its plan to protect American industries, but Singapore feels the decision is unfair—especially because Singapore already allows U.S. goods to enter with zero tariffs.
Singapore’s Response: Disappointment, Not Retaliation
Speaking in Parliament on Tuesday, Prime Minister Wong said the 10% rate does not appear to be open for negotiation. He expressed disappointment and said such a decision was not expected from a country considered a “friend.”
Even though many Southeast Asian countries are facing even higher tariffs, Singapore still feels the flat 10% rate ignores the long-standing free-trade agreement between the two nations.
Despite the frustration, Wong made it clear that Singapore will not impose retaliatory tariffs in return. He said the government prefers a calm and steady approach to handling this trade issue.
Economic Impact on Singapore
Singapore’s economy relies heavily on global trade. Wong said this tariff could lead to lower demand for Singapore-made goods, and businesses might even shift operations to the U.S. to avoid paying extra taxes.
If this happens, it could result in job losses and company downsizing in Singapore. Wong also warned that Singapore’s GDP growth forecast of 1% to 3% for 2025 might need to be lowered, depending on how things develop globally.
Growing Concerns About a Global Trade War
Wong believes this move by the U.S. could be the start of something bigger—a global trade war. With China already responding with 34% tariffs on U.S. imports, tensions are rising quickly.
He said the world might be heading toward a period of slower economic growth, where countries are more focused on protecting their own industries rather than working together.
What’s the Trade Surplus Debate?
The U.S. claims it had a $2.8 billion trade surplus with Singapore in 2024. However, Singapore’s Trade Minister Gan Kim Yong said the real number is closer to $30 billion, showing a big disagreement in how both sides view the trade relationship.
