US tariffs signals end to era of free trade: Singapore PM Lawrence Wong

Expressing disagreement over US President Donald Trump’s move to impose 10 per cent universal tariff, Singapore Prime Minister Lawrence Wong said these are “not actions one does to a friend”. Wong warned that this signals the end to “the era of rules-based globalisation and free trade”.

 

Shaking up global markets, US President Donald Trump announced on April 2 the imposition of a 10 per cent import duty on many countries. However, according to PM Wong, the US tariff is also unfair in the case of Singapore because his country has no such impositions on US goods. “If the tariffs were truly reciprocal and aimed only at those with trade surpluses, Singapore’s tariff should be zero. Yet, we are still subjected to the 10 per cent tariff,” he said.

 

 

Criticising the US for the action, Wong highlighted the friendly relationship between Singapore and the US. He expressed his disagreement that Trump did not consider this while imposing universal tariffs. “These are not actions one takes toward a friend,” he remarked.

 

Criticism on US’ trade policy 

 

Going forwards, Wong also criticised the US’s policy to address the country’s trade imbalances by imposing tariffs. Wong believes 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.

 

Task force to minimise US tariff effect 

 

Singapore reportedly plans to set up a national task force to assist businesses and professionals affected by US tariffs. These tariffs might slow down the economy and impact jobs and wages, Prime Minister Wong said in the Parliament on Tuesday.

 

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

 

Calling the global situation ‘fluid’, PM Wong said the task force’s goal is to help businesses and workers deal with current uncertainties, become stronger, and adjust to the changing economy.

 

Are US tariffs an end to the era of free trade?

 

Wong said the new tariffs will probably slow down global growth in the short term. This could hurt Singapore’s export-focused industries like manufacturing and wholesale trade. He also warned that the global uncertainty and weaker business confidence will affect service sectors such as finance and insurance.

 

He explained, “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 now reviewing its 2025 growth forecast of 1 to 3 per cent and is likely to revise it down.

 

Wong added that the tariffs show the end of “the era of rules-based globalisation and free trade”.

 

After Wong’s speech, Deputy Prime Minister Gan said it is ‘still early days’ and that more time is needed to fully understand how the tariffs will affect Singapore’s economy. He said the new task force is still being set up, but one of its main jobs will be to share information and keep people updated.

 

[With inputs from PTI]