Singapore concerned about economic outlook due to impact of US tariffs

The Singaporean Prime Minister said the global economy is being rebuilt, but not as an integrated system but as increasingly branching ecosystems centered around the US and China.

View of a cargo port in Singapore. (Photo: THX/TTXVN)

On April 16, Singapore Prime Minister Lawrence Wong said that US tariff measures have created great uncertainty for businesses and economies around the world.

The Singaporean Prime Minister stressed that the current base tax rate is still much higher than before, and market fluctuations make it impossible for any business to comfortably plan long-term investments when the tax rate can change at any time.

Referring to the trade war between the US and China, he said that this has caused trade activities between countries to stagnate and "not only them but countries around the world will also suffer losses."

Warning that the trade war will accelerate the process of decoupling the world's leading economy , the head of the island nation of Singapore also commented that the global economy is rebuilding, but not as an integrated system, but as increasingly branching ecosystems centered around the US and China.

Agreeing with the Singaporean Prime Minister, on the same day, Singapore's Deputy Prime Minister and Trade Minister Gan Kim Yong also warned of the risk of recession for the island nation's economy.

Companies in Singapore have been affected by the trade war between the US and China and the global economic impact will be even greater if the US imposes more tariffs on the semiconductor and pharmaceutical industries, he said.

Also at the press conference, Mr. Gan Kim Yong announced the establishment of a task force to help businesses and workers address economic challenges.

The force, headed by Mr. Gan Kim Yong, will have eight members including ministers, officials from many ministries and representatives from business associations and labor unions.

This task force will assess the impact of new developments, address emerging challenges and develop long-term strategies and responses.

Singapore on April 14 lowered its 2025 GDP growth forecast to 0-2% from 1-3% previously after preliminary estimates showed the economy contracted in the first quarter.

Singapore is subject to a 10% base tax on imports into the US./.

Source: https://www.vietnamplus.vn/singapore-quan-ngai-ve-trien-vong-kinh-te-do-tac-dong-tu-thue-quan-cua-my-post1033202.vnp