How Trump Tariffs Could Affect Singapore SMEs, Jobs, and Markets

Singapore seems to have escaped a major hit from the US tariffs, with a relatively low baseline levy of 10 percent.

- Annabelle Liang

But this is just a small part of the picture, say analysts, who note that the country will feel an outsized impact if tariffs put a damper on trade.

Mr Song Seng Wun, economic adviser at CGS International Securities Singapore, told The Straits Times: "Every big or small country that is hit by tariffs, Singapore is watching.

"Ultimately Singapore is looking at external demand and trade flows through its ports, to support economic growth and jobs creation."

Ms Lorraine Tan, Morningstar's director of Asia equity research, believes the Government is warranted in keeping its cautious outlook for economic growth at 0 percent to 2 percent.

The Monetary Authority of Singapore expects the economy will be put to the test in the coming months as trading partners are hit with higher tariffs.

WHY ARE SMES WORRIED ABOUT TARIFFS?

Small and medium-sized enterprises (SMEs), which make up 99 percent of businesses here, have asked for more support to navigate the uncertainty.

Companies with supply chains extending beyond Singapore could directly face higher tariffs if they sell goods to the US.

They often have less room than large conglomerates to absorb these costs and less power to pass them on to customers.