US Tariffs Will Significantly Impact Singapore's Growth: PM Wong

New task force chaired by DPM Gan to help businesses, workers address uncertainties

- Goh Yan Han

The recent tariffs imposed by the United States will hurt the Singapore economy, businesses and workers, said Prime Minister Lawrence Wong.

"Singapore may or may not go into recession this year. But I have no doubt that our growth will be significantly impacted," he said.

Budget 2025 measures will provide short-term support and a new task force will help address immediate uncertainties while the Government continues to monitor the situation, PM Wong added.

But in the near term, global growth is expected to be weaker, which means external demand for Singapore's goods and services will fall, he pointed out.

Outward-oriented sectors – like manufacturing, wholesale trade and transport – will bear the brunt of the impact.

PM Wong, who is also Finance Minister, said in Parliament on April 8: "Slower growth will mean fewer job opportunities and smaller wage increases for workers. And if more companies face difficulties or relocate their operations back to the US, there will be higher retrenchments and job losses."

The Trade and Industry Ministry, which had originally projected gross domestic product growth of 1 per cent to 3 per cent for 2025, is reassessing "and will likely revise it downwards", PM Wong said.

He was delivering a ministerial statement in response to US President Donald Trump's April 2 announcement of a suite of universal tariffs, including a 10 per cent duty on Singapore. The measures kick in on April 9.

The Government is continuing to monitor developments closely and stands ready to do more, if and when necessary, PM Wong said.

"We have the resources to do so because of the financial discipline and prudence we've exercised over the decades."

The new task force, chaired by Deputy Prime Minister Gan Kim Yong, will aim to help businesses and workers address the immediate uncertainties, strengthen their resilience, and better adapt to the new economic environment, PM Wong announced.