SINGAPORE (Reuters) – Singapore Prime Minister Lawrence Wong said on Wednesday there was little comfort in the U.S. postponing most of its proposed “reciprocal” tariffs, saying the changes had already created great uncertainty around the world.
Wong also said the trade war between the U.S. and China would see trading between the countries grind to a halt, and “the pain will be felt everywhere”.
While President Donald Trump has postponed the so-called reciprocal tariffs until July, Wong noted the U.S. was still imposing a 10% baseline tariff.”No company can comfortably plan long-term investments while knowing that the tariff rates could be changed at a moment’s notice,” he said, adding the trade war would accelerate the decoupling of the U.S. and Chinese economies.
“What we are witnessing is the remaking of the global economy – not as one integrated system, but as bifurcated ecosystems centered around the U.S. and China.”
As a small, open and trade-driven economy, Trump’s trade policies have clouded Singapore’s outlook. On Monday, the central bank loosened monetary policy for the second time this year and the trade ministry lowered its economic growth forecast for 2025.
Amid the deteriorating outlook, Singapore will go to the polls on May 3. It will be the first electoral test for Wong, who took over from long-time premier Lee Hsien Loong as leader of the People’s Action Party (PAP) in May 2024.
The PAP is widely expected to win the majority of seats, continuing its unbroken streak since Singapore’s independence in 1965. However, attention will be on its popular vote share, especially after a relatively weak showing in the 2020 election.
(Reporting by Bing Hong Lok and XInghui Kok; Editing by John Mair)
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