More consensus than conflict in Parliament over impact of US tariffs on Singapore

SINGAPORE - Days after Prime Minister Lawrence Wong put up a five-minute video warning Singaporeans to brace themselves for more shocks to come in the wake of sweeping tariffs imposed by America, the issue took centre stage when Parliament sat on April 8.

The video, which

laid out the dangers ahead for the world

after the US move to abandon the global trading system it once championed, attracted much attention – more than a million views so far on various social media platforms. But it also attracted cynicism from some opposition figures here, who accused the PAP Government of trying to instil fear ahead of the coming election.

Such accusations were not repeated after

PM Wong’s 20-minute speech on April 8,

in which he reiterated the need to be resolute and united in the face of a changed world, and his Government’s plans to deal with the unpredictable days ahead.

If anything, he called for the opposite of fear.

“We have our ingenuity and wit, our grit and gumption, and never-say-die spirit that has seen us through every crisis, and will carry us through the ones to come,” he said. “So I say to this House and to fellow Singaporeans – do not fear.”

In his trademark deliberate style of explication, he drew on history and past experience to explain the wider ramifications of the tariffs beyond the direct impact on Singapore’s industries.

For instance, should more countries reject established trade rules to negotiate country-by-country trade relationships, smaller countries like Singapore with limited bargaining power risk being marginalised and sidelined.

If the 1930s are any guide, the tariffs may also spark retaliation that could become a full-blown trade war, except that the risks are greater today, given that trade is now a far larger part of the global economy and supply chains are more deeply intertwined.

And while it might be too early to tell what the full impact will be on the economy, business and consumer confidence has already been hit, and there is no doubt international trade and investments will also suffer.

But PM Wong’s underlying message was not one of doom and gloom. Having established the need to be realistic about the challenges ahead, he detailed how the Government would meet them, including through

a new task force that will look to tap the opportunities amid the tumult.

The task force, which will be led by Deputy Prime Minister Gan Kim Yong, will involve not only the economic agencies, but also apex organisations representing businesses, employers and workers.

Besides understanding what challenges firms and workers are facing and how the Government can further support them, the task force will assess the impact of the tariffs and be transparent in sharing information to address uncertainties, said DPM Gan.

PM Wong also detailed how Singapore will proactively work with like-minded countries to ensure the resilience of the multilateral system, revealing that he had spoken with leaders such as British Prime Minister Keir Starmer and Malaysian Prime Minister Anwar Ibrahim, with more such conversations lined up.

The Republic will also work with fellow Asean countries to strengthen trade within the regional grouping, and to send a strong signal of its commitment to regional economic integration, he added.

“The US may have decided to turn protectionist, but the rest of the world does not have to follow the same path,” he said.

In the end, even MPs from the other side of the aisle did not have many objections to the plan the Government had laid out.

Progress Singapore Party Non-Constituency MP Leong Mun Wai suggested that the situation might not be so dire, given that the 10 per cent tariff put on Singapore was the lowest in Asia. He said this would put Singapore in a stronger competitive position than its neighbours to continue exporting to the US.

Mr Leong also suggested that the world had been adjusting to a post-Pax Americana era for some time, and that the tariffs only accelerate this process. 

Notably, he did not repeat his assertion from two days earlier that the Government’s response so far has been “overblown”.

PM Wong acknowledged that America’s actions may accelerate the shift to a new global order, but this period of transition is not only uncertain, but also increasingly unstable.

While people may see Singapore being in the lowest tier of tariffs as the silver lining despite dark clouds, PM Wong said he took no comfort in this.

“As a country so reliant on trade for our growth, on external markets for our living, this new environment will be detrimental to Singapore’s longer-term prospects,” he said.

Leader of the Opposition Pritam Singh had earlier made clear that his party’s view was mostly aligned with the Government’s.

He reiterated in the House that what Singapore needed most now to get through the storm was unity.

Later on, while Parliament was still in session, his party

issued a statement on the US tariffs,

which said: “The strength of our nation has always been unity in diversity, and this must include an openness to rational and responsible policy, proposed along all political quarters. It is only through welcoming such diversity of ideas that we will emerge stronger through the storm.”

PM Wong ended his statement on the tariffs with a message of assurance that drew thumps of approval.

“We will stay resolute and united,” he said. “Our little red dot will continue to shine in a dark and troubled world. Singapore will hold our ground as a beacon of stability, purpose and hope.”

From the parliamentary proceedings, it is clear that political parties in the House are not at odds on the gravity of the situation, and the threat posed to Singapore’s way of life.

As campaign season for the general election approaches, politicians of various stripes will hopefully see the importance of explaining to voters their parties’ vision of how Singapore can navigate the choppy waters ahead.

Those that instead dismiss the issue out of hand might well end up expending political capital rather than winning voters to their side.