{"id":13783,"date":"2025-08-13T17:26:03","date_gmt":"2025-08-13T09:26:03","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=13783"},"modified":"2025-08-14T09:06:24","modified_gmt":"2025-08-14T01:06:24","slug":"us-tariffs-10-singapore-how-local-workers-businesses-affected","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/us-tariffs-10-singapore-how-local-workers-businesses-affected\/","title":{"rendered":"US Tariffs To Remain At 10% For Singapore. How Local Workers & Businesses Will Be Affected"},"content":{"rendered":"\n

Since President Donald Trump came back to the White House, it has been a roller-coaster ride of emotions for investors, businesses as well as countries\u2019 political leaders. That\u2019s mainly down to the raft of new tariffs to be slapped on competitors and allies alike.<\/p>\n\n\n\n

Singapore is one such ally. The city-state may not usually feature in headlines about global trade wars but it\u2019s still been caught in the crosshairs of the US administration. It should also be noted that Singapore runs a trade deficit with the US, importing US$86.4 billion worth of goods and services while only exporting US$59.6 billion<\/a>, as of 2024. Though, it should be noted that if we looked just at goods, the trade deficit is much closer – with imports at US$45.0 billion and exports at US$43.2 billion, as of 2024. <\/p>\n\n\n\n

Nevertheless, the US government is keeping its 10% tariffs on a range of Singapore-origin goods. It highlights the fact that even trade-friendly nations like Singapore aren\u2019t immune to larger geopolitical shifts.<\/p>\n\n\n\n

But, more importantly, how will the tariffs impact Singapore workers and businesses.<\/p>\n\n\n\n

Read Also: 5 Takeaways From PM Lawrence Wong\u2019s Ministerial Statement About The Trump Tariffs<\/a><\/em><\/strong><\/p>\n\n\n\n

What Are These US Tariffs About?<\/strong><\/h3>\n\n\n\n

It\u2019s been over 4 months since President Trump first announced the surprise tariffs on 2 April 2025 \u2013 dubbed the Liberation Day tariffs. So, here\u2019s a quick refresher. <\/p>\n\n\n\n

The Liberation Day tariffs are essentially taxes placed on imported goods entering the US. They\u2019ve been designed to protect American industries from foreign competition or to respond to what the US government deems as unfair trade practices, with particular ire reserved for China.<\/p>\n\n\n\n

In Singapore\u2019s case, a 10% tariff has been kept in place on products that include electronic components, precision engineering goods, semiconductors, and some chemicals. At the time, this was the lowest tier of tariffs placed on trading partners.<\/p>\n\n\n\n

The targeted segments aren\u2019t exactly small or insignificant for Singapore. In fact, they form the backbone of Singapore\u2019s manufacturing sector, which employs tens of thousands of people and contributes around 22% to Singapore\u2019s GDP.<\/p>\n\n\n\n

Why Has Singapore Been Affected?<\/strong><\/h3>\n\n\n\n

While Singapore isn\u2019t directly being targeted by the US (in the same way that China is), it\u2019s part of the wider global supply chain. <\/p>\n\n\n\n

Many US tariffs today are part of a broader push by the Trump administration to \u201clevel the playing field\u201d in trade, which the country thinks has become massively tilted in favour of China given its dominance of global supply chains.<\/p>\n\n\n\n

Singapore, despite its strong reputation as a neutral and trusted trade partner, hasn\u2019t been exempt but this move isn\u2019t entirely new.<\/p>\n\n\n\n

The 10% tariff was introduced previously during the Trump administration’s tariff hikes and has been rolled over into the current trade regime. The only difference now is that this 10% tariff will become a permanent feature.<\/p>\n\n\n\n

The Impact On Singapore Businesses<\/strong><\/h3>\n\n\n\n

The most immediate impact will be felt by Singapore\u2019s export-oriented manufacturers. Many large companies (as well as small- and mid-cap listed firms) already have production facilities outside Singapore.<\/p>\n\n\n\n

These centres tend to be clustered in countries such as Malaysia, Vietnam, and China. A lot of these manufacturing clusters tend to be focused on producing things such as specialty electronics components.<\/p>\n\n\n\n

For Singapore-based companies exporting to the US, that extra 10% tariff cost gets baked into the selling price. Clearly, that will make them less competitive compared to a supplier from a US-based manufacturer. Products that are entirely made in a foreign country may be hit with even heavier tariffs based on which country the manufacturing plant is in.<\/p>\n\n\n\n

Size Matters But There\u2019s Also Help Available<\/strong><\/h3>\n\n\n\n

In relative terms, Singapore exporters can still be competitive \u2013 versus other countries outside the US \u2013 because the lowest tariff rate any country can receive from the US is 10%. Whether any of these tariffs will actually push US firms to switch to US suppliers is a totally different question altogether.<\/p>\n\n\n\n

For larger firms, they should be able to weather the tariff imposition better due to economies of scale. Smaller firms could see their operating margins and profits pressured but SMEs in Singapore are also being encouraged to explore new export markets, such as Thailand, India, the Middle East, and Mexico.<\/p>\n\n\n\n

The Singapore Economic Resilience Taskforce (SETR) is also launching a Business Adaptation Grant \u2013 capped at $100k per firm \u2013 by October 2025 that aims to help SMEs adapt to this new tariff environment. Over the medium to long term, all this should help mitigate the impact from US tariffs.<\/p>\n\n\n\n

Will This Affect Jobs In Singapore?<\/strong><\/h3>\n\n\n\n

The manufacturing sector in 2024 employed about 350,000 people in Singapore, according to SingStat. A significant chunk of these jobs are in electronics and precision engineering. <\/p>\n\n\n\n

That number was a drop from around 450,000 manufacturing jobs in 2021, highlighting the fact that even before these tariffs manufacturing jobs may have been moving elsewhere (i.e. places that were cheaper) and that more advance technology may already be in the adoption phase in the manufacturing to raise competitiveness.<\/p>\n\n\n\n

If business slows further or the shift offshore accelerates, there\u2019s a risk that local jobs, especially in production or assembly roles, could be scaled back.<\/p>\n\n\n\n

However, Singapore has been proactive in helping workers upgrade their skills, especially through programmes like SkillsFuture and Workforce Singapore (WSG) initiatives. <\/p>\n\n\n\n

As industries pivot toward advanced manufacturing, robotics, and Industry 4.0 processes, there\u2019s also a shift in demand toward higher-value-add roles like engineering design, automation, and quality assurance.<\/p>\n\n\n\n

Read Also: Complete Guide To The SkillsFuture Level-Up Programme (SFLP)<\/a><\/em><\/strong><\/p>\n\n\n\n

Navigating The New Normal<\/strong><\/h3>\n\n\n\n

While a 10% tariff may not sound massive, it\u2019s enough to cause a rethink for companies operating on tight margins. Singapore\u2019s economy has always thrived on open trade and adaptability. <\/p>\n\n\n\n

Yet, manufacturing is a sector that has seen contraction (in terms of number of jobs) in the past 3 to 4 years, even before the imposition of these Trump tariffs.<\/p>\n\n\n\n

More importantly, for Singapore, is the services sector. That made up over 73% of GDP in 2024, according to the Ministry of Trade and Industry (MTI). And the services sector is also much, much bigger in terms of the amount of people employed.<\/p>\n\n\n\n

In 2024, Singapore\u2019s services sector employed over 2.9 million people \u2013 dwarfing the numbers employed by the city state\u2019s manufacturing sector. At the end of the day, we have to remember that this 10% tariff is being imposed on physical goods only and not on services.<\/p>\n\n\n\n

However, for workers in the manufacturing sector in Singapore, it\u2019s clear that seismic shifts are occurring on a global scale \u2013 potentially outside of Singapore\u2019s ability to impact. Jobs tied to low-cost manufacturing should become harder to defend, and so, it becomes more important for workers to shift higher up the value chain. <\/p>\n\n\n\n

With the right support and skills, the Singapore workforce can continue to stay competitive in higher-value segments of the global economy.<\/p>\n\n\n\n

The US tariff decision could result in Singapore adapting and repositioning itself in a world that\u2019s constantly rewriting the trade rulebook.<\/p>\n","protected":false},"excerpt":{"rendered":"Jobs in Singapore’s manufacturing sector were already shrinking.\n","protected":false},"author":1,"featured_media":13785,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[364],"tags":[2125,2205,530],"yoast_head":"\nUS Tariffs To Remain At 10% For Singapore. 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