Massive challenge for new national task force as Singapore walks tariff tightrope

The impact on jobs, wages and confidence will be unpredictable. Weathering the storm will require all hands on deck and all tools at its disposal.

- Selena Ling

It has been about two years since Singapore's Covid-19 multi-ministry task force stood down after steering the country through the pandemic.

In Parliament on April 8, Prime Minister Lawrence Wong announced a new national task force to help the country navigate another global crisis.

The task force, chaired by Deputy Prime Minister Gan Kim Yong, will aim to address immediate uncertainties after US President Donald Trump's "Liberation Day" tariff announcements on April 2. It will include representatives from Singapore's economic agencies as well as the Singapore Business Federation, Singapore National Employers Federation and National Trades Union Congress.

As the global economy continues to reel from the tariffs, tensions have only escalated with the US imposing an additional 50 per cent tariff on China, in response to China's retaliatory tariff and fiery rhetoric that it will "fight to the end." Europe, too, is mulling over a response.

In addressing the impact of the tariff announcements on Singapore, PM Wong put it plainly that "the era of rules-based globalisation and free trade is over."

"This marks a profound turning point. We are entering a new phase in global affairs — one that is more arbitrary, protectionist and dangerous," he added.

As the global economy enters uncharted waters once again, how deep will the damage go and what will be the priorities for the task force in helping Singapore businesses to stay afloat?

THE IMPACT UNFOLDS

In the short term, the labour market could face a double-edged sword — domestic industries and reshoring activities may boost employment, given that the 10 per cent tariffs on Singapore's exports to the US is relatively mild compared with some of its regional peers. But jobs in export-dependent sectors caught up in the possible retaliatory whirlwind could suffer.