IMPACT ON SINGAPORE
His comments came on the back of US President Donald Trump on Wednesday unveiling a raft of punishing tariffs targeting countries around the world, in a move that risks sparking a ruinous trade war.
Some of the heaviest blows were reserved for what Trump called the “nations that treat us badly”, including 34 per cent on goods from China, 20 per cent on key ally the European Union, 24 per cent on Japan and 26 per cent on India.
The 34 per cent tariff on Chinese imports is on top of the 20 per cent Trump previously imposed, bringing the total new levy to 54 per cent.
Vietnam was hit with 46 per cent. Thailand, Indonesia, Malaysia, Cambodia and Myanmar were given “reciprocal” tariffs ranging between 24 per cent and 49 per cent.
Even though Singapore was hit with the lowest level of tariffs – 10 per cent – the impact will be significant, Singapore Deputy Prime Minister Gan Kim Yong said earlier on Thursday.
Mr Gan, who is also the trade and industry minister, said that Singapore is reassessing its economic forecast and “may need to make adjustments in time to come”.
Warning that households and businesses have to “be prepared for rough waters”, he added that the government will introduce more measures to help them if necessary.
Senior Minister Lee Hsien Loong also warned that Singapore’s growth will be affected.
“Our growth will be hurt, though it is too early to tell by how much,” he said in a Facebook post on Thursday.
Businesses and trade associations in Singapore also told CNA that they are bracing for higher costs in the near term as global supply chains are upended.
In the longer run, a bigger concern is the risk of a recession in the US and what that means for the global economy, they added.
Source: CNA
