Demand for S'pore goods, services set to fall as global growth weakens

Look out for central bank's second quarterly monetary policy statement and MTI's advance GDP estimates today

- Kang Wan Chern

The recent tariffs imposed by the US on its trading partners globally will hurt the Singapore economy, businesses and workers, and potentially lead to a recession in 2025, Prime Minister Lawrence Wong said in Parliament last week.

"Singapore may or may not go into recession this year. But I have no doubt that our growth will be significantly impacted," he said during a ministerial statement delivered on April 8.

Local stocks plunged 8.2 per cent during the week despite some respite on April 9, when President Donald Trump announced that the US would pause reciprocal tariffs on imports from 60 trading partners, less than 24 hours after the duties went into effect.

China, which retaliated with an 84 per cent tariff on US goods on April 9, was excluded from the pause. Its latest duties on US imports came into effect on April 10, the same day the White House clarified that Mr Trump's previously announced 125 per cent tariff against China is actually 145 per cent, after including a 20 per cent tariff on fentanyl.

Singapore's Straits Times Index (STI) closed the week at 3,512.53 points on April 11, after suffering its worst day since the 2008 global financial crisis on April 7, when it dropped by more than 8.5 per cent.

Since then, Mr Trump has granted reciprocal tariff exemptions for smartphones, computers and some other electronics imported largely from China, providing a big break to tech firms, such as Apple, that rely on imported products.

In an April 12 notice to shippers, the US published a list of 20 product categories excluded from the import taxes. It featured 20 product categories, including all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays.