Trump’s tariffs shake up global trade—Singapore imposed with 10% baseline rate

As part of his vision to “make America wealthy again,” United States President Donald Trump announced on Wednesday (April 2) that he would impose a 10% baseline tariff on all goods coming into America from anywhere in the world, including Singapore.

Framing it as a declaration of economic independence, he also introduced hefty “reciprocal” tariffs on at least 60 trading partners, singling out what he called the “nations that treat [the US] badly” for levying “excessively high duties” on American products.

Asian economies bore the brunt of these measures. China now faces a new 34% tariff on its exports to the US, adding to the existing 20% that Trump had already imposed on the country for not doing enough to combat fentanyl trafficking.

In Southeast Asia, Cambodia was hit hardest with a 49% tariff, followed by Vietnam at 46%, Thailand at 36%, and Indonesia and Taiwan at 32% each. Malaysia faces a 24% tariff, while the Philippines is subject to a 17% duty.

The baseline tariffs are set to take effect at midnight on April 5 (12 p.m. on April 6, Singapore time), and the reciprocal tariffs will kick in at midnight on April 9.

Here’s an overview of the tariffs imposed on different countries:

What does this mean for Singapore and the rest of the world?

Trump’s policy represents the most significant shake-up of the global trade system since World War II, and it is only a matter of time before America’s trading partners respond with tariffs of their own.

With the U.S. accounting for about 15% of global trade, these tariffs are set to have significant consequences on the world economy. 

Analysts assessing the impact of these measures have drawn comparisons to the Smoot-Hawley Tariff Act of 1930, which imposed 20% tariffs on most imports and played a role in deepening the Great Depression.

​In 2024, the United States was one of Singapore’s top trading partners, and a recent Monetary Authority of Singapore (MAS) survey showed financial institutions here were most concerned that intensifying trade tensions could impact the country’s growth and reignite inflation.

Another flash survey done by the American Chamber of Commerce in Singapore yesterday also found that nearly seven in 10 (69%) of companies in Singapore expect the new tariffs to have a significant or moderate negative impact on their operation.

45% of these firms plan to pass on the increased costs from the new US tariffs to their customers, while others intend to respond by diversifying their supply chains to reduce their reliance on high-tariff markets, or seizing opportunities to gain market share from competitors who are slower to adapt.

…but Singapore should be in a good spot

The recently passed Budget 2025 introduces several initiatives that could cushion the potential impacts of tariffs and enhance Singapore’s economic resilience.

Moreover, the nation’s robust fiscal position—evidenced by a fiscal surplus of S$6.4 billion in FY2024—provides the government with a substantial buffer to implement measures mitigating the impact of external economic challenges.

However, it’s important to acknowledge that 2025 is an election year, and political instability could pose risks to Singapore’s economic resilience.

A stable government is crucial in ensuring that policies remain consistent and effective in addressing global economic uncertainties.

The current government has built a strong reputation for stability, positioning Singapore as one of the most politically secure nations on the global stage. 

This consistent political stability is reflected in its high rankings—for instance, the World Bank placed Singapore in the 97th percentile for Political Stability and Absence of Violence/Terrorism in 2023.

Featured Image Credit: The White House

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