Firms fret over lack of clarity

Sales for consumers and businesses will be hit hard.

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"Many companies are now preparing for greater trade fragmentation, with some actively diversifying into other markets, and others investing in automation and regionalising supply chains," he said.

Manufacturing contributes to 20 per cent of Singapore's gross domestic product, with pharmaceuticals and electronics, which includes semiconductors, supporting tens of thousands of high-skilled jobs here.

"A downturn in export competitiveness could affect not just manufacturers, but also adjacent sectors like logistics, industrial services, and research and development," Mr Tan added.

Original equipment manufacturer parts exporter Outsource Asia Industries is hunting for a new partner in Vietnam, India, the Philippines and Malaysia that can manufacture construction safety equipment for its US customers.

"We were asked by our US customers to source from countries where tariffs are lower. This process could take three to four months," said Mr T.K. Khor, Outsource Asia's sales manager, whose firm makes guard rails, lifelines and roof anchors for the US construction industry.