Some S'pore-based retailers feel the pinch as US tariffs take effect

Those with a presence in US or deep ties to supply chains there face rising uncertainty

- Rosalind Ang

Local collectibles company Mighty Jaxx felt the immediate impact of the tariffs on its shipments currently on the way to the US.

"These shipments would be hit with the required tariffs upon landing in the US," said Mr Victor Tan, chief investment officer of Mighty Jaxx.

As the US moves ahead with a new round of tariffs, Singapore-based retailers with a presence in the US or deep ties to US supply chains are facing rising uncertainty, said Dr David Leong, managing director of People Worldwide Consulting.

On April 2, US President Donald Trump imposed sweeping tariffs on many countries before announcing a 90-day halt on reciprocal tariffs about a week later.

The pause came into effect on April 10 and lifts on July 9, a White House order showed.

Meanwhile, after multiple rounds of escalating tariffs, the current tariff rate on China stands at 145 per cent, while China's retaliatory tariffs on the US stand at 125 per cent.

Dr Leong said: "For Singaporean retailers operating here, there are fewer concerns, as Singapore does not have reciprocal tariffs on US imports, and trade with the rest of the world remains business as usual."

Mr Tan said that while the tariffs will definitely have some impact on Mighty Jaxx's US business, its key sales regions of Europe, Middle East and Africa, South-east Asia and North Asia still have increasing demand. "We foresee them supporting our sales growth this year," he said.