Debated in Parliament on 5 Feb 2025.
Mr Alex Yam Ziming asked the Deputy Prime Minister and Minister for Trade and Industry in light of recent indications that the United States may impose additional tariffs on certain imports (a) what is the Ministry's assessment of the potential impact that such tariffs will have on Singapore’s export-dependent economy; and (b) what are the measures that the Government will undertake to mitigate any adverse effects on local businesses and workers, particularly in sectors most exposed to US trade policy changes.
On 1 February 2025, the United States (US) announced that it would impose 25% tariffs on all imports from Canada and Mexico, and additional 10% tariffs on imports from China. The US has since put its implementation of tariffs on Canada and Mexico on hold for at least 30 days. However, the US' additional tariff of 10% on Chinese imports has since come into effect and in response, China has announced that it will implement countermeasures starting from 10 February 2025.
While Singapore is not directly affected by the US' imposition of additional tariffs on China or China's response, the tariffs have implications for global trade and economic growth. They will introduce more friction to trade, which will affect Singapore as an open economy where trade is three times our gross domestic product. The countries affected could change where companies produce their goods, resulting in the re-organisation of supply chains and higher prices and requiring businesses to adapt to shifts in supply and demand. We are currently assessing the indirect impact on Singapore companies and engaging those which may be affected. We are also monitoring any additional tariffs.
The Government has existing support measures to help our businesses navigate global uncertainties and diversify their supply chains and markets. Enterprise Singapore supports our companies by providing market intelligence and advice on changing regulatory landscapes so they can adapt and respond effectively. They also help companies access new markets and partners to enhance their supply chains. Singapore businesses need to stay agile during uncertainty and disruption. We are confident that our private sector and entrepreneurs will find innovative ways to do so and the Government will continue to support and work closely with them in this effort.
PAPERCUTS