FX.co ★ Singapore Dismisses Tariff Retaliation, Signals Possible GDP Revision

Singapore will not implement any retaliatory actions in response to U.S. tariffs, as stated by Deputy Prime Minister and Trade and Industry Minister, Gan Kim Yong, on Thursday. Despite the situation potentially prompting a revision of Singapore’s annual economic growth forecast—which had been projected between 1% and 3%—due to the economic landscape being "worse than expected," the decision stands. This follows President Trump’s declaration of a sweeping 10% tariff on imports from all nations. "We are understandably disheartened that, even with our robust and enduring economic and commercial ties with the U.S., as established under the US-Singapore Free Trade Agreement (USSFTA), we are still facing the same 10% baseline tariffs," Gan stated. Although Singapore possesses the option of pursuing legal measures under the USSFTA, it opts against retaliation to prevent increased costs for both businesses and consumers. "Implementing retaliatory import duties would simply raise the cost of our imports from the U.S.," he explained. The country will instead focus on collaboration with U.S. officials to grasp and address their concerns.