PUBLISHED ONApril 07, 2025 7:35 AMByDana LeongThe impact of the US tariffs has been overstated, according to Progress Singapore Party (PSP) chairman Tan Cheng Bock, who disagreed with recent assessments made by several ministers.
US President Donald Trump unveiled sweeping new tariffs on trading partners on April 2, including a 10 per cent baseline tariff on almost every country — including Singapore.
Several ministers, including Prime Minister Lawrence Wong, have since weighed in on the issue.
In a video posted on Friday (April 4), PM Wong warned Singaporeans that the "likelihood of a full-blown global trade war is growing" as a result of the tariffs, adding that "the road ahead will be harder".
Senior Minister Lee Hsien Loong said at an event on Sunday that the sweeping global tariffs is going to affect Singapore's trade.
"It’s going to affect our economy, it’s going to affect our region, and it’s going to affect our future. And it’s not good news," he cautioned.
Speaking at a PSP media conference on Sunday (April 6), Dr Tan, secretary-general Leong Mun Wai and vice-chairperson Hazel Poa fielded questions regarding the latest tariffs.
"I think that the risk called by government ministers about this tariff, in my opinion, is partly to instil fear in the voter," said Dr Tan.
"So the voter will be so frightened... to vote for the incumbent".
Dr Tan also said that these tariffs are still in their infancy and "must be studied carefully" before officials can make "statements of this kind and scare everybody".
Leong also seconded Dr Tan's opinion, saying that "the topic is a little overblown" and that worries about inflation in Singapore stemming from the tariffs are unfounded.
"I don't dare to make a conclusion right now," said Leong, adding that the resultant impacts are still largely unknown despite his background of "over 30 years" in finance.
Leong also argued that Singapore has always managed to overcome difficulties of much larger scales, including global inflation, stagflation and the global oil crisis in the 1970s.
These events, he said, should be taken in our stride and "the important thing is that we must make our domestic politics right".
Poa also weighed in on the matter, saying that PSP made a "conscious decision to exercise greater restraint" in areas of foreign policy.
"These are external facing areas, and I think that in such situations, we want to be united and not compromise the government's ability to protect Singapore's interest," she added.
Poa also explained that these global events are still in their early stages and need to be monitored more closely before PSP makes any decisions to amend its manifesto.
Sheana Yue, economist at Oxford Economics, told AsiaOne earlier that the impact of Trump's tariffs "will not be felt equally across all sectors", given the current exemptions for pharmaceuticals and semiconductors.
"Other manufacturing sectors will see a negative impact, although it might not be as massive as it first appears. That's because the tariff rate implemented on Singapore is the global minimum, giving Singapore a relative advantage," said Yue.
A flash survey by the American Chamber of Commerce in Singapore in March however found that 45 per cent of companies in Singapore plan to pass on the higher prices from US tariffs to their customers.
Cost increases, supply chain disruptions, and increased regulatory complexities are companies' primary concerns, according to the survey.
Companies are likely to absorb the tariffs in the short term once they are implemented, before they start to pass on the added costs to consumers and businesses.
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