Singapore (VNA) – A series of recent tariff announcements by the US administration has created fresh uncertainty for businesses in Singapore, raising concerns over higher export costs and a more volatile trading environment.
On February 20, the Supreme Court of the US struck down so-called reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that US President Donald Trump had exceeded his constitutional authority. Shortly after, the White House issued an order to impose a 10% global tariff under Section 122 of the Trade Act. A day later, Trump announced that the rate would be raised to 15% on all goods entering the US.
Singapore is among a handful of countries around the world and the only one in South-east Asia facing an increase in its US tariff rate, from 10 to 15%, according to The Straits Times.
Ang Yuit, President of the Association of Small and Medium Enterprises, said the coming months will be challenging. He noted that everyone thought the tariff situation had stabilised, and they were getting used to the current levels.
Kok Ping Soon, Chief Executive of the Singapore Business Federation, said early feedback suggests uncertainty is hurting business sentiment more than the tariff rate itself, as firms struggle to plan investments amid shifting policies.
Manufacturer EP-Tec Solutions, which exports LED display screens to the US, warned that a five-percentage-point increase could significantly affect pricing competitiveness, project budgets and procurement timelines.
Lennon Tan, President of the Singapore Manufacturing Federation, described US tariff policy as highly dynamic and urged businesses to adapt. He expressed hope that the Singapore Government would engage Washington to seek a longer adjustment period for the new 15% rate.
Singapore’s Deputy Prime Minister Gan Kim Yong has said the Government will engage US counterparts to seek clarity on the implementation of a potential new 15% tariff./.
