Singapore's Construction Sector Sees Fallout From US Tariffs

Firms feeling strain from uncertainty over pricing and supply of raw materials

- Grace Leong

Singapore's construction sector is starting to see some fallout from US President Donald Trump's global tariffs, with firms here grappling with uncertainty over pricing and supply of raw materials, according to local industry associations.

But analysts are mixed on the tariffs' impact on construction materials costs in Singapore, even as the temporary truce reduces the risks of acute global supply chain disruptions.

"New US tariffs on steel and aluminum are tightening global supply chains, and Singapore is starting to feel the strain," said Mr Benjamin Lim, Singapore Manufacturing Federation's (SMF) industry group chairman for building products and construction materials.

"Mills in China and India are fully booked for the next six to seven months as US buyers stockpile materials, limiting availability in Asia, and driving up costs."

On May 12, the US and China agreed to suspend part of their tariffs on their respective exports for 90 days. This was the latest development in what has become a tit-for-tat exchange between the two superpowers over trade since the US leader announced sweeping global tariffs on April 2.

Despite the 90-day truce, analysts pointed out that the 25 per cent sector-specific tariffs on steel, aluminum, automobiles and auto parts announced in March and April remain in place, albeit with rebates for vehicles assembled in the US and a partial exemption for the UK.