Prime Minister Lawrence Wong warned that the “likelihood of a full-blown global trade war is growing” and urged his trade-reliant nation to prepare for difficult times ahead.
“We are very disappointed by the US move, especially considering the deep and long-standing friendship between our two countries,” he said in an address to parliament.
“These are not actions one does to a friend.”
Singapore was hit with a 10 percent tariff despite a free-trade agreement with the United States.
The rate is much less than those imposed on other countries.
But Wong said the trade-dependent nation will be particularly hurt by a slump in the world economy and the unravelling of the global trading system based on free trade.
“Singapore may or may not go into recession this year, but I have no doubt that our growth will be significantly impacted,” he said.
The trade ministry is reassessing its economic growth forecast this year of 1 to 3 percent “and will likely revise it downwards,” he added.
Wong said that under the US-Singapore FTA, the city-state imposes zero tariffs on American goods. Singapore also runs a trade deficit with Washington.
“If the tariffs were truly reciprocal and if they were meant to target only those with trade surpluses, then the tariff for Singapore should be zero,” he said.
Singapore hosts thousands of US companies and many of them have made the city their Asia-Pacific headquarters.
While the island-nation is not a US defence treaty ally, it enjoys robust military ties with Washington.
“This marks a profound turning point,” he said.
“We are entering a new phase in global affairs, one that is more arbitrary, protectionist and dangerous.” (AFP)
