Singapore Must Prepare for New Global Order, Seek Opportunities: DPM Gan

It will expand trade partnerships, forge new alliances amid turmoil caused by US tariffs

- Ovais Subhani

Singapore needs to prepare for a new economic and geopolitical environment that is more protectionist, arbitrary, and dangerous, besides managing the hit to economic growth this year, said Deputy Prime Minister Gan Kim Yong.

Speaking at an event organised by DBS Bank on April 17, DPM Gan said Singapore and its trading partners worldwide will have to contend with the trade and investment paralysis caused by US President Donald Trump's new tariff regime.

But, at the same time, Singapore will work with like-minded countries to expand its trade partnerships, forge new alliances, and reform and strengthen the multilateral trading system.

"These moves will open up new opportunities for businesses to explore new markets and strengthen their supply chains," he said.

Singapore, which currently imposes zero tariffs on US imports, is still subject to a baseline 10 per cent rate.

While much higher tariffs announced for other countries have been put on hold for a 90-day period ending in July, imports from China—Singapore's top trade partner—face a 145 per cent tax.

DPM Gan said the baseline tariff does not appear to be open for negotiation, and will likely be the fixed minimum rate going forward, regardless of a country's trade balance or existing trade arrangements with the US.