Hanoi (VNA) – The US’s new tariff policies have created great uncertainty for businesses and economies worldwide, according to Singaporean Prime Minister Lawrence Wong.
The Singaporean leader stressed that the current baseline tariffs remain significantly higher than before, and market volatility makes no company comfortably plan long-term investments as tariff rates could be changed at a moment's notice.
The trade war between the US and China will see trading between the countries grind to a halt, he said, noting that not only the two countries, but nations around the world will also suffer.
Warning that the trade war can accelerate the decoupling of the world’s leading economies, Wong noted that the global economy is being reshaped— not as one integrated system, but as increasingly bifurcated ecosystems centred around the US and China.
Echoing PM Wong’s concerns, Singapore’s Deputy PM and Minister for Trade Gan Kim Yong also warned of a potential recession facing the Southeast Asian nation. He said that Singaporean companies have already been affected by the US - China trade war, and that the global economic impact can worsen if the US imposes additional tariffs on the semiconductor and pharmaceutical industries.
Singapore has cut its GDP growth forecast for 2025 to 0% to 2% from the 1-3% prediction previously, following preliminary estimates showing an economic contraction in the first quarter. The country faces a baseline tariff of 10% on its exports to the US./.
Singapore outlines vision for regional, global cooperation
Prime Minister of Singapore Lawrence Wong emphasised that as an open economy, his country must take an active role in managing global commons.
