The Workers’ Party (WP) has expressed strong concern over the United States’ decision to impose a 10% baseline tariff on Singaporean exports, warning that it could destabilise trade, employment, and economic growth.
In a statement issued on 8 April 2025, the WP described the move as a unilateral act that undermines Singapore-US relations and poses challenges for businesses and workers in key sectors such as finance, trade, and tourism.
The new tariffs, announced by US President Donald Trump, will come into effect on 9 April.
Despite Singapore being placed in the lowest tier of tariff increases, the WP warned that the long-term implications for a trade-dependent economy like Singapore could be severe.
The WP noted that the current uncertainty marks a departure from the global trade norms established under the General Agreement on Tariffs and Trade and the World Trade Organization.
The party expressed concern over possible retaliatory measures by other nations, which could trigger a broader trade war.
In its response, the WP outlined several policy recommendations. It urged the government to initiate bilateral negotiations with the US immediately, while keeping all diplomatic and legal options open, including invoking dispute mechanisms under the US-Singapore Free Trade Agreement or through the WTO.
It also proposed deepening engagement with US legislators and business groups such as the Congressional Singapore Caucus and the American Chamber of Commerce to advocate for Singapore’s trade interests.
Regionally, the WP called on Singapore to lead efforts within ASEAN to negotiate collectively with the US, leveraging the bloc’s combined economic weight.
The party further urged stronger participation in broader trade pacts like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
Notably, the WP pointed out that Singapore’s 10% tariff rate remains lower than those imposed on regional competitors such as Taiwan, South Korea, and Malaysia, where tariffs range from 24% to 32%. This could provide a short-term export advantage for firms in semiconductors, telecoms, and electronics.
In Parliament on 8 April, during a ministerial statement, Prime Minister Lawrence Wong addressed the implications of the US tariffs.
Progress Singapore Party NCMP Leong Mun Wai asked whether Singapore’s existing low-tariff regime might offer a competitive edge and whether the impact of the tariffs could be temporary—lasting no more than two years.
In response, PM Wong acknowledged Singapore’s placement in the lowest tariff tier but expressed caution about interpreting this as an advantage.
“If you want to see silver linings in a dark cloud, you can say so… but I take no comfort at all in us being in the lowest tier,” he said.
The WP also addressed domestic implications, reiterating its longstanding call for stronger social safety nets. It advocated for redundancy insurance and mandatory retrenchment benefits to support workers affected by trade-related displacement.
Other proposals included refining retraining programmes, enforcing skills transfer from foreign professionals, banning noncompete clauses for low- and mid-level employees, and enacting a universal minimum wage.
To improve resilience in the business sector, the WP proposed creating an export-import bank to offer trade financing and launching targeted support for SMEs, similar to aid deployed during the COVID-19 pandemic.
A dedicated secretariat for SMEs was suggested to ensure tailored and coordinated assistance.
The party concluded by stressing the need for unity and openness to diverse policy perspectives during this uncertain period.
“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,” the WP stated.
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