In response to sweeping import tariffs imposed by Washington, Singapore unveils a multi-agency task force aimed at safeguarding jobs, supporting businesses, and reinforcing trade resilience.
In a decisive move to counter the economic impact of the United States’ blanket import tariffs, Singapore will form a national task force to assist businesses and protect workers from the fallout, Prime Minister Lawrence Wong revealed in Parliament on Tuesday (8 April).
The newly announced task force will be headed by Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong and will comprise members from key economic institutions including the Singapore Business Federation, the National Employers Federation and the National Trades Union Congress. This coalition will help manage immediate challenges and guide businesses through a fast-changing global trade environment.
The prime minister warned that the recent US decision—spearheaded by President Donald Trump—to introduce a flat 10 per cent tariff on all imports, regardless of existing trade relationships, threatens to destabilise global markets. Singapore, which imposes no tariffs on US imports, finds itself subject to this new rate despite maintaining a trade deficit with the US and adhering to a longstanding free trade agreement.
“This is not how friends treat one another,” said Mr Wong, expressing disappointment in Washington’s actions and stressing that the tariffs directly contravene the principles of the World Trade Organization (WTO), particularly the Most Favoured Nation clause, which mandates equal treatment among members.
Mr Wong noted that Singapore’s economy, heavily reliant on external demand, is likely to experience slower growth due to global uncertainty. Sectors like manufacturing, wholesale trade, and financial services could be hardest hit, prompting a likely revision to the current 1–3 per cent growth forecast for 2025.
Job losses, reduced wage growth, and a potential rise in retrenchments are expected if companies choose to relocate operations to the US or cut back on spending. While Singapore is not currently in recession, the prime minister said the risk remains.
Mr Gan, addressing Parliament shortly after Mr Wong, explained that the task force will prioritise clear communication with stakeholders and close collaboration with affected firms. He added that the inclusion of unions highlights the concern over medium- to long-term employment impacts, as the economy undergoes structural change.
Beyond its internal measures, Singapore is engaging with international partners to coordinate responses and explore joint strategies, particularly within ASEAN. A special meeting of regional economic ministers is set to take place later this week to reinforce cooperation and promote intra-ASEAN trade.
Singapore will not retaliate with its own tariffs, but the government remains deeply concerned that this marks a broader shift away from multilateral trade norms. Mr Wong described the situation as a “fundamental rejection” of global trading rules, warning of a slide into selective bilateralism where small nations like Singapore may find themselves increasingly marginalised.
The broader threat, Mr Wong cautioned, is a full-blown global trade war. China has already declared countermeasures, and the EU is considering similar steps. Although a short window for negotiation remains before the tariffs come into effect on 9 April, the prime minister emphasised that “once trade barriers are raised, reversing them is exceptionally difficult.”
Markets have already responded with volatility, and confidence among investors and firms has been shaken. Some Singaporean businesses are delaying projects, wary of stranded assets amid changing global trade rules.
The prime minister also warned of deeper consequences: the erosion of global cooperation in favour of nationalist, protectionist policies. With the US-China relationship under further strain, Mr Wong said any escalation would carry dire consequences for the world economy.
To withstand these uncertainties, Singapore will reinforce its strengths as a trusted trading hub and deepen alliances with like-minded economies. Measures introduced under Budget 2025 include targeted assistance such as utility rebates, tax relief for companies, and support schemes to enhance competitiveness and resilience.
“We are ready to do more, should the need arise,” Mr Wong concluded, urging Singaporeans to remain resolute in the face of global upheaval.
