S'pore, rest of world worse off after US tariffs; ASEAN ties must stay on track: SM Lee

Even though the global economy did not succumb to the "Liberation Day" tariffs imposed by the US in April, many countries, including Singapore, are now worse off.

- Zhaki Abdullah

And they will be so for a long time to come, Senior Minister Lee Hsien Loong said on Dec 6 at the official reopening of Cheng San Community Club.

This means less growth and progress for Singapore, more friction with other countries, and a more troubled world, SM Lee said.

This is even as Singapore's economy is projected to perform better than expected in 2025, he noted.

The Ministry of Trade and Industry had upgraded the country's growth forecast to around 4 per cent, from the 1.5 per cent to 2.5 per cent range projected in August.

The economy is projected to grow between 1 per cent and 3 per cent in 2026.

Singapore was among the countries hit by a 10 per cent baseline tariff, or taxes imposed on imported goods, that US President Donald Trump announced on April 2.

SM Lee said the US is now taking a very different attitude towards international trade and investment, and towards its relationship with other countries.

"It no longer believes in win-win cooperation or in rules which apply to countries big and small," he said.

Instead, the US now prefers to deal with countries on a bilateral basis, using its relative strength to maximise benefits for itself, the Senior Minister said.