‘You don’t do this to a friend’: Singapore PM on Trump's 10% tariffs

Wong expressed disappointment over the US decision, especially given the long-standing friendship between the two nations. "These are not actions one takes toward a friend," he remarked.

He noted that according to the US administration, these sweeping tariffs are intended to address America's trade imbalances, but he argued that running a trade deficit is not inherently negative. "It simply means that American consumers are buying more from the world than what the world is buying from America," Wong explained.

In response to the tariffs, Singapore will establish a national task force to support businesses and workers impacted by the US tariffs, which could slow economic growth and affect jobs and wages, as announced by Prime Minister Wong in Parliament on Tuesday.

The task force, led by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, will include representatives from various economic agencies, the Singapore Business Federation, the Singapore National Employers Federation, and the National Trades Union Congress.

Describing the global situation as "fluid," PM Wong stated that the task force's objective will be to help businesses and workers navigate immediate uncertainties, enhance resilience, and adapt to the changing economic landscape.

Wong warned that the tariffs are likely to dampen global growth in the short term, adversely affecting Singapore’s export-driven sectors such as manufacturing and wholesale trade. The accompanying global uncertainty and weakened sentiment will also impact service industries, including finance and insurance. He noted, “Slower growth will mean fewer job opportunities and smaller wage increases for workers. If more companies face challenges or move their operations back to the US, we could see increased retrenchments and job losses.”

The Ministry of Trade and Industry is currently reviewing its 2025 growth forecast of 1 to 3 percent, projecting a likely downward adjustment.

Beyond these immediate concerns, Wong stated that the tariffs signal an end to "the era of rules-based globalization and free trade."

Following Wong's speech, Deputy PM Gan remarked that it is "still early days" and that more time is needed to assess the full impact of the tariffs on Singapore's economy. The newly formed task force is in the process of finalizing its composition and mandate, but one of its key roles will be communication and information sharing.

Gan argued that the US focus on goods trade presents a "partial picture," as the US enjoys a surplus in services trade with many countries, including exports in software, education, entertainment, finance, and business services.

Wong criticized the US approach as a "fundamental rejection" of World Trade Organization (WTO) principles, including the Most Favoured Nation rule, which requires equal treatment among all members. "The US move undermines this principle and opens the door to selective trade relationships based on unilateral preferences," he warned. He cautioned that if other countries adopt similar approaches, the rules-based trading system could collapse, which would be particularly detrimental to smaller nations like Singapore.

He pointed out that smaller countries have limited bargaining power in one-on-one negotiations, allowing major powers to dictate terms and possibly marginalizing smaller nations.

Wong cautioned that the risk of a full-blown global trade war is increasing. While Singapore will not impose retaliatory tariffs, other nations might. China has already announced countermeasures, and the European Union is considering its response.

Wong mentioned that there is a "brief window" for countries to negotiate with the US before the higher tariff rates take effect on April 9. "It might be possible to lower some rates, but we need to be realistic," he advised Parliament. "Once trade barriers are put in place, they tend to remain. Rolling them back is much more challenging... the uncertainty created by such a drastic move will dampen global confidence and growth."

He said that the tariffs have already unsettled stock markets and negatively impacted business and consumer confidence, potentially weighing on global trade and investment. Singapore’s economic agencies are in contact with both multinational companies and domestic businesses to mitigate these effects.

“These tariffs may just be the beginning of more increases to come globally,” Wong said.

(with PTI inputs)