US baseline tariff of 10% on S'pore offers 'little comfort': PM

Trump may raise it or set higher tariffs on industries such as pharma, semiconductors

- Angela Tan

The 10 per cent baseline tariff rate the US has imposed on Singapore offers "little comfort", Prime Minister Lawrence Wong said on Aug 17.

This is because while the baseline rate is the lowest any country can get, no one knows if or when the US might raise it or set higher tariffs on specific industries such as pharmaceuticals and semiconductors.

"What we do know is that there will be more trade barriers in the world. That means small and open economies like us will feel the squeeze," PM Wong said in his National Day Rally speech at ITE College Central.

This is why Singapore convened the Singapore Economic Resilience Taskforce earlier in 2025 to review and refresh its economic strategies.

The task force, chaired by Deputy Prime Minister Gan Kim Yong, is looking at many issues from how Singapore can stay competitive and secure access to green energy to power its future sustainably, to how the country can help enterprises break into new markets, expand overseas and become global leaders.

PM Wong said the external shifts are not temporary.

The US and China are likely to continue to drift apart and the global economy will become more contested and fragmented.

The road ahead will not be as easy as before.