Singapore unlikely to be hit by direct US tariffs but may still be impacted: Vivian

Singapore is not expected to be hit by trade tariffs from the United States, but still stands to be indirectly impacted as it is a small and open economy, said Foreign Minister Vivian Balakrishnan.

- Hariz Baharudin

Speaking in Parliament on Feb 4, Dr Balakrishnan noted how the US-Singapore Free Trade Agreement has contributed to a tripling of bilateral trade since 2004, allowing the US to consistently maintain a trade surplus with Singapore.

"I do not anticipate us being on the hit list for direct tariffs, because the United States has a surplus as far as the trade balance with us is concerned," said Dr Balakrishnan.

But Singapore still needs to be careful and prepared for how turbulent the economic situation can be, he said.

"The fact that we are a small, open economy, and that trade constitutes more than three times our GDP (gross domestic product), means if there is any friction, if there is any degradation of economic integration, global supply chains and world trade, we will be impacted indirectly," said Dr Balakrishnan.

The minister was responding to Nominated MP Neil Parekh, who had asked about Singapore-US bilateral ties following the takeover of President Donald Trump from Mr Joe Biden on Jan 20, as well as about the impact of tariffs imposed by the US on some countries.