Trump's unpredictable nature will make 2025 a volatile year, say envoys

Chan Heng Chee and Tommy Koh raise concerns over tariffs and impact on region

- Angela Tan

The unpredictable nature of Donald Trump, poised to begin his second US presidency, will make 2025 a volatile year, two veteran Singapore diplomats said at the UOB Global Markets Economic Forum held at Pan Pacific Singapore on Jan 14.

The US President-elect is due to assume office on Jan 20.

Professor Chan Heng Chee, ambassador-at-large at the Ministry of Foreign Affairs, said: "What the US does or does not do matters to the whole world.

"It is the largest and most powerful economy in the world. It has the most powerful military in the world.

"Mr Trump himself values being unpredictable. It is his negotiating tactic and he uses this tool to his advantage."

On Trump's threat to impose universal tariffs while hiking tariffs for China to as high as 60 per cent, Prof Chan said tariffs will rise and affect Asean members, particularly Vietnam.

The region has benefited from the diversification of the supply chain from China to countries such as Vietnam, Thailand, Malaysia and Singapore.

"That attracted attention because it is seen in the US as avoiding sanctions. President (Joe) Biden was going to fix this and tax these countries in South-east Asia. What more President Trump," she said.

Prof Chan added that free trade agreements (FTAs) with the US are not foolproof. There is a provision that allows the US to push aside the agreement for national security reasons, she noted.