SINGAPORE – 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 in a worse off position.
And they will be so for a long time to come, said Senior Minister Lee Hsien Loong 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 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.
He added: “It believes that if it imposes tariffs, then it can reduce its trade deficits and get some extra benefits from other countries.”
In such a less certain and more troubled world, everybody loses, with smaller countries left the most vulnerable, he noted.
The Republic’s relations with its neighbours are generally stable, good and cordial, he said, pointing to the recent
