Singapore's Trade-Dependent Economy at Risk

Prime Minister Lawrence Wong has raised concerns over the United States' new 10% universal tariff rate, describing it as non-negotiable and a significant threat to Singapore's trade-dependent economy. The move could potentially derail the nation's economic growth projections for 2025.

Government May Lower Growth Forecasts

With the current growth forecasts for 2025 set at 1% to 3%, the government is considering a revision in light of the new tariffs. However, Wong remains uncertain whether this will lead to a recession, highlighting the unpredictable nature of the situation.

A Fixed Minimum Tariff with Broad Implications

The Prime Minister emphasized that the 10% rate appears to be a fixed minimum, applying uniformly regardless of a country's trade balance or existing agreements. This policy shift by the US could have far-reaching effects on global trade dynamics.