New US tariffs likely to hurt firms in Singapore, nearly half say they will pass on costs: Survey
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More than two-thirds of the respondents in the AmCham survey flagged potential reciprocal tariffs on countries taxing US imports as the most significant concern for their business.
ST PHOTO: CHONG JUN LIANG
Renald Yeo
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SINGAPORE – Nearly half, or 45 per cent, of companies polled in Singapore plan to pass on increased costs from new US tariffs to their customers,
Other firms intend to respond by diversifying their supply chains to reduce their reliance on high-tariff markets, or by seizing opportunities to gain market share from competitors that are slower to adapt, AmCham Singapore said on April 2.
More than two-thirds of the 36 respondents polled flagged potential reciprocal tariffs on countries taxing US imports as the most significant concern for their business – over existing trade measures.
Nearly seven in 10 (69 per cent) said they expect the new tariffs to have a significant or moderately negative impact on their operations.
The survey findings came ahead of the announcement by the White House on April 2 in Washington, detailing sweeping reciprocal tariffs on America’s trading partners, with the harshest burden falling on Asian economies.
Singapore’s imports to the US will be levied the “baseline” 10 per cent tariff on all goods coming into the US from anywhere in the world. Imports from about 60 trade partners that the White House described as the “worst offenders” face higher rates.
In the AmCham survey, around 20 per cent of respondents said they believe that the measures will have no effect on their business.
Mr Frank Debets, Asia-Pacific customs and trade leader at PwC Singapore, disagreed. He said it will be “surprising” if companies reporting no impact are fully insulated from the knock-on effects.
For instance, he said, their suppliers and customers may be affected, hurting their ability to buy or sell products or services, or they may be caught by retaliatory measures elsewhere.
“It would be wise for anyone who believes the tariffs do not impact them to perform the necessary due diligence to ensure that their belief is well founded,” he added.
The flash poll was jointly conducted by AmCham Singapore, BowerGroupAsia Singapore and PwC Singapore. The responses were gathered between March 3 and 10. THE BUSINESS TIMES
