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SINGAPORE: The United States’ new 15 per cent blanket tariff on imports may narrow Singapore’s edge over regional peers, but analysts said on Monday (Feb 23) that the country remains well-positioned to weather the shift.<\/span><\/p>\n \u201cGiven that the tariffs are applied broadly, Singapore loses a slight competitive edge as the playing field is now levelled at 15 per cent,\u201d said Ms Raisah Rasid, global market strategist at JPMorgan Asset Management.<\/p>\n Mr Barnabas Gan, chief economist at RHB, echoed that view, saying the \u201clevelled playing field\u201d could erode some of Singapore\u2019s export competitiveness.<\/p>\n US President Donald Trump announced <\/span>the new tariff rate<\/span> over the weekend, although details of how the new tariff will be implemented have not been released yet.<\/span><\/p>\n Deputy Prime Minister Gan Kim Yong said on Sunday that <\/span>Singapore is seeking clarity from Washington<\/span> about the tariffs, and that the 15 per cent rate is likely to apply to Singapore.<\/span><\/p>\n Singapore was previously subject to the baseline 10 per cent levy, while some other countries faced steeper reciprocal tariffs.<\/span><\/p>\n Despite the increase, Singapore’s effective tariff burden remains the lowest in the region by a wide margin, according to Maybank Securities economist Brian Lee.<\/p>\n He said Singapore will likely see a 1.8 percentage point increase in US tariffs to about 6.9 per cent on an effective basis.<\/p>\n \u201cThis effective tariff rate remains the lowest in ASEAN by a wide margin,\u201d he said, noting that exemptions from last year\u2019s reciprocal tariffs are still in place.<\/span><\/p>\n \u201cSingapore remains the ASEAN country with the largest share of exempted goods (such as semiconductors, electronics and pharmaceuticals). Exempted goods comprise more than 60 per cent of Singapore\u2019s US-bound shipments,\u201d he added.<\/span><\/p>\n Singapore\u2019s competitive advantage lies \u201cbeyond the rudimentary calculation of tariff rate differentials\u201d, added Mr Edward Lee, chief economist at Standard Chartered.<\/span><\/p>\n \u201cCompetitiveness will encompass many other aspects, such as institutional stability, policy credibility and stability, robust financial capability, connectivity, productivity, expertise,\u201d he said.<\/span><\/p>\n The Economic Strategy Review aims to increase Singapore\u2019s comparative advantage further so that the country is more anchored in new and growth sectors, he added.<\/span><\/p>\nSINGAPORE\u2019S STRENGTHS<\/span><\/h2>\n