Slower growth, souring business sentiment: How Trump’s tariffs could hurt Singapore’s economy

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DAMPENING EXPORTS

Given Singapore’s smaller size and high dependent on commerce, its business has limited choices if US tariffs slower global trade and development, analysts said.

Reduced US exports would probably lessen Singapore’s trade progress, according to&nbsp, Mr Ray Farris, chief analyst at Eastspring Investments. &nbsp, The doubt surrounding&nbsp, international trade was also undermine business sentiment.

Ms. Sheana Yue, an analyst at Oxford Economics, made the observation that business expense in Singapore is closely related to export.

” We suspect firm attitude may sour over the coming apartments”, she said.

Yet, she does not anticipate a serious slowdown. &nbsp,” Our analysis suggests GDP may decrease by simply 0.4 per share from our foundation in Q1 2026″, she added.

Mr Brian Lee, an analyst at Maybank Securities, highlighted that Singapore’s view is supported by easing economic conditions, the development of major infrastructure projects and an expected “generous vote Budget”.

The General Election may be held by November 23rd, and Singapore’s Budget Statement may be delivered on February 18.

” We are projecting 2025 GDP growth slowing to 2.6 per share from the 4 per cent display measure in 2024 – our estimates lies at the top end of MTI’s 1 per cent – 3 per cent selection”, he said.

TARIFFS ON CHINA TO HAVE LARGER IMPACT

China, one of Singapore’s largest buying companions, is expected to feel the burden of US taxes, which will in turn affect Singapore. &nbsp,

According to Mr. Mohi-uddin, North American trade is mostly concentrated in the US, Canada, and Mexico, while a decline in China’s imports to the US could stifle Chinese demand for goods and services from the rest of Asia.

According to Ms. Yue, Singapore’s deal level with China is 20 times greater than its total business volume with Mexico and Canada. &nbsp,

As Singapore’s another business partners also have powerful ties with China, the ripple effects could be substantial. &nbsp,

” The US is also possible to scrutinise Singapore’s partnership with China, particularly following reports of Nvidia cards being procured improperly by DeepSeek in Singapore”, she added.