How Will US Tariffs Affect Consumers in Singapore?

Singapore has been hit with a baseline 10 per cent tariff on its goods imported to the US, but the effects are likely to be more wide-ranging for the export-oriented, regionally plugged-in country as its Asian neighbours grapple with the higher tariffs imposed.

- Alyssa Woo

China has been hit by the highest overall tariffs at 54 per cent, followed by Cambodia at 49 per cent, and Vietnam at 46 per cent. Thailand has been hit by tariffs at 36 per cent, Indonesia and Taiwan at 32 per cent each, Malaysia at 24 per cent, and the Philippines at 17 per cent.

Given that US companies either buy many or part of their raw materials from overseas, or manufacture them partially before finishing them in the US before they are sold, it is likely that the tariffs will affect the prices of the things people here buy, and, eventually, wages and jobs.

WILL PRICES RISE?

Apple fans here are likely to feel the bite and pay more for its iPhones, iPads, and laptops. The US consumer tech company ticks many of the boxes as a candidate for raising the prices of its goods under the new tariff regime.

Like other electronics manufacturers, it has a complicated global supply chain, which has a strong impact on prices.

Assistant professor of economics Mei Yuan at the Singapore Management University said: "For electronics, where parts of production involve input from the US, then it gets more complicated. And if Apple relocates its production line because China or other countries retaliate with reciprocal tariffs, the global supply chain will get disrupted, and then Singapore consumers will face higher prices for sure."

There have been some media articles suggesting Apple could get product exemptions on US tariffs, the way it did in 2019. If it does not, Morgan Stanley analyst Erik Woodring told CNBC that to offset the tariffs, Apple may have to raise prices across its product lines by 17 to 18 per cent in the US.

The Apple product you have has likely been manufactured in China, India, Japan, South Korea, Taiwan, or Vietnam.