Trump Tariff Will 'Spell Trouble For All Nations,' Says Singapore's PM — Despite Country Facing One Of The Lowest Tariffs In Southeast Asia

In the wake of the recent U.S. tariffs announcement, Singapore’s leading political figures have voiced their apprehensions, warning of potential economic repercussions.

What Happened: Prime Minister Lawrence Wong expressed concerns about the growing possibility of a global trade war, stating that the tariffs could have serious implications for all countries, especially smaller ones like Singapore, reported the South China Morning Post.

"It will spell trouble for all nations especially small ones like Singapore."

"We risk being squeezed out, marginalised and left behind," Wong added.

The country is subject to a minimum 10% universal tariff on all exports to the US, one of the lowest in Southeast Asia.

The city-state’s benchmark Straits Times Index has experienced a notable decline in response to the news. The STI plummeted 7.84% on Monday.

See Also: Verizon’s New 3-Year Price Lock, Free Phone Offer: Strategic Move To Boost Customer Retention

Senior Minister Lee Hsien Loong reiterated Wong’s concerns at a community event, emphasizing the potential impact on Singapore’s trade, economy, and future. The city-state’s top trade official announced that Singapore would need to reassess its economic forecast in light of the new tariffs.

"It's going to affect our trade, it's going to affect our economy, it's going to affect our region and it's going to affect our future," Lee said.

"It's not good news."

However, opposition figures have criticized the government’s response, accusing it of scaremongering ahead of the upcoming national vote. The tariffs announcement comes at a time when cost-of-living pressures are a major concern for Singapore’s citizens.

Why It Matters: The U.S. tariffs have been a source of global concern, with over 50 countries, including Singapore, ready to negotiate on the high import tariffs that have sent global markets into a tailspin.

The tariffs, aimed at reducing America's $1.2 trillion annual trade deficit, have stirred global markets, leading to a loss of $2 trillion on Wall Street in a week.

Furthermore, the US markets faced a severe downturn as tensions between the US and China escalated, eroding $5 trillion in market cap in just two days.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Next: Howard Lutnick Says Army Of Millions Will Build iPhones In The US, But Could Trump’s Tariffs Make The Premium Apple Flagship Cost $2,300?

Image Via Shutterstock