Singapore's Trade-Dependent Economy at Risk

Prime Minister Lawrence Wong has expressed concerns over the United States' new 10% universal tariff rate, stating it appears non-negotiable and could severely impact Singapore's economy. "It doesn't look like the 10% universal rate is open for negotiation. This seems to be the fixed minimum tariff, regardless of a country's trade balance or existing trade arrangements," he told parliament.

Potential Revisions to Growth Forecasts

The Singaporean government is considering revising its 2025 growth forecasts, currently set at 1% to 3%, due to the potential economic fallout from the tariffs. However, Wong mentioned it remains uncertain whether these changes will lead to a recession.