Gan Kim Yong on the Impact of Trump’s Potential New 15% Tariffs on Singapore

Why It Matters

The potential 15% US tariff could erode Singapore’s export competitiveness and dampen investment, making swift policy support and market diversification essential for sustaining economic growth.

Key Takeaways

• US 15% tariffs threaten Singapore’s export growth and competitiveness
• Government urges firms to assess impact and seek resilience measures
• Budget 2026 support packages aim to cushion immediate tariff shock
• Uncertainty over implementation and global response hampers long‑term planning
• Diversifying markets and higher‑value products become strategic priorities

Summary

Singapore’s Minister for Trade and Industry, Gan Kim Yong, addressed the looming impact of President Trump’s announced 15% across‑the‑board tariffs on Singapore. He noted that despite a robust 5% growth in 2025, exports to the United States have already slipped nearly 9%, and the new tariff regime adds a layer of unpredictability to the trading environment. The minister emphasized that the exact mechanics of the tariffs remain unclear, as does the reaction of other nations with existing US trade agreements. He called for a long‑term economic‑strategy review, tighter coordination with the US, and active engagement with the Singapore Economic Resilience Task Force to gauge sector‑specific effects. Budget 2026 already includes measures to support companies, workers and households, with the promise of additional assistance if needed. Gan repeatedly stressed that “uncertainty is the key word,” warning that fluctuating tariff levels and time‑limited provisions could disrupt investment decisions and trade negotiations. He also pointed out that a uniform 15% tariff would not alter Singapore’s relative competitiveness, but higher global costs would inevitably slow demand and capital spending. The broader implication is that Singapore must accelerate diversification into new markets, pursue higher‑value‑added products, and leverage its hub advantages—connectivity, skilled workforce, and productivity—to maintain growth. Companies are urged to share feedback, assess exposure, and adopt flexible strategies to navigate the volatile trade landscape.

Original Description

Speaking to the media on Feb 22, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong emphasised the need for long-term preparation and a strategic review to enhance competitiveness in light of US President Donald Trump’s potential new 15% tariff on all goods entering the US. READ MORE: https://str.sg/nPwT

Chapters:

00:00 Government to seek clarity on US' new tariff implementations

01:48 SERT to assess impact on Singapore businesses

02:16 Singapore needs to be prepared for impact of tariffs

02:40 Q&A

04:35 Are there any contingency plans to help support businesses?

06:10 Will Singapore lose its previous tariffs edge?

07:54 Is there a possibility for Singapore to be free of tariffs in the next 6 months?

10:22 Will this change Singapore's GDP forecast?

10:49 How is Singapore going to negotiate the tariff implementations?

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