A video featuring Singapore’s Prime Minister, Lawrence Wong, has gained widespread attention across the globe, despite the country’s relatively low profile in global politics. The video quickly went viral, particularly among critics of former President Donald Trump and those opposed to trade wars, as Mr. Wong addressed the flaws and consequences of the tariffs imposed by the Trump administration. In the five-minute clip, Mr. Wong speaks calmly yet firmly, warning that America’s withdrawal from the global trading system it once helped shape poses serious risks—not only for Singapore but for the global economy. The video was shared widely, even by people who were unfamiliar with Mr. Wong or Singapore, recognizing the significance of his message.
While some opposition voices in Singapore initially dismissed the video as an election tactic aimed at stoking fear, it later became clear that the issue is indeed pressing. Singapore is expected to feel the effects in two ways: directly, through tariffs on its exports, and indirectly, through disruptions in global trade. As a major transit and shipping hub, Singapore is vulnerable to these economic shocks
The direct punishment
Singapore was unexpectedly included in U.S. President Donald Trump’s sweeping universal tariffs, which imposed a 10 percent duty on its exports. The decision stunned both the Singaporean government and its business sector. According to the rationale provided by the Trump administration, the tariffs were intended to be reciprocal, targeting countries with bilateral trade surpluses against the United States. By that logic, Singapore should not have been affected—its tariff should be zero. Under the U.S.-Singapore Free Trade Agreement, Singapore imposes no tariffs on American imports and actually runs a trade deficit with the U.S., meaning it imports more from the U.S. than it exports. The inclusion of Singapore on the tariff list has therefore been widely seen as irrational and punitive, without any clear explanation
Prime Minister Lawrence Wong cautioned that the newly imposed tariffs would have a serious impact on Singapore’s economy, affecting both businesses and citizens. While it remains uncertain whether the country will enter a recession this year, he stressed that economic growth will almost certainly be significantly weakened. He pointed to an impending global slowdown, which is expected to reduce external demand for Singapore’s goods and services. Outward-facing sectors such as manufacturing, wholesale trade, and transport are likely to be hit hardest. These disruptions, he warned, could eventually reach ordinary Singaporeans through rising prices and job losses.
Speaking in Parliament on April 8, Wong, who also serves as Finance Minister, warned that slower growth would translate into fewer job opportunities and more modest wage increases. He further cautioned that if more companies struggle or choose to relocate their operations back to the U.S., Singapore could face a surge in retrenchments and rising unemployment.
The Ministry of Trade and Industry, which had earlier projected GDP growth of 1 to 3 percent for 2025, is now reassessing its forecast and is likely to revise it downward in light of the new economic challenges.
The Indirect Punishment
The U.S. has extended its tariff measures to major manufacturing hubs across Asia—centers on which many Singaporean businesses depend. As these Asian production bases are increasingly targeted, companies in Singapore, which are deeply embedded in global supply chains, will inevitably come under pressure.
East Asia and Southeast Asia are bearing the brunt of these tariff hikes, with China hit hardest. The average U.S. tariff on Chinese goods now exceeds 145 percent. Southeast Asian nations are also grappling with steep tariffs ranging from 10 to 49 percent, with Vietnam facing a 46 percent rate.
Prime Minister Lawrence Wong warned that these measures will hasten the fragmentation of the global economy. Instead of trade and capital flowing based on economic efficiency, they will increasingly be redirected according to political alliances and strategic interests.
PM Wong characterized these so-called “reciprocal” tariffs as a clear rejection of World Trade Organization rules. He further cautioned that the likelihood of a full-scale global trade war is growing.
The deteriorating relationship between the United States and China remains a pressing concern for Singapore. PM Wong stressed that any further escalation between the two powers could destabilize the global economy. He warned that the world is entering a more volatile era—one marked by frequent and unpredictable shocks.
What happens next?
Prime Minister Lawrence Wong laid out a proactive strategy to navigate ongoing economic uncertainty, announcing the formation of a new task force led by Deputy Prime Minister Gan Kim Yong. This task force will identify economic opportunities amid global turmoil and will comprise not only government agencies but also key organizations representing businesses, employers, and workers. Its mandate includes assessing emerging challenges, supporting affected companies and employees, evaluating the impact of tariffs, and maintaining transparent communication.
Wong also emphasized the importance of strengthening Singapore’s ties with like-minded nations to uphold a rules-based international order. He has already held talks with British Prime Minister Keir Starmer and Malaysian Prime Minister Anwar Ibrahim, with further diplomatic outreach planned. Singapore also aims to deepen cooperation with ASEAN partners to expand intra-regional trade and reinforce economic integration.
Experts acknowledge that even if the U.S. eventually withdraws the tariffs and diplomatic ties improve, the indirect effects of the trade war are likely to linger—signaling tough days ahead for Singapore and global trade