Key Points:

• Singapore PM Lawrence Wong criticizes the US's 10% universal tariff, emphasizing its negative impact on the country's economy.
• The Workers’ Party calls for bilateral negotiations and considers all options, including dispute settlement mechanisms.
• Wong warns of potential job losses and economic downturn due to increased tariffs and calls for proactive government measures.

SINGAPORE - In a recent address to parliament, Prime Minister Lawrence Wong expressed his discontent regarding the 10% universal tariff imposed by the United States, stating that it does not appear open for negotiation. Wong emphasized the likelihood of the tariffs causing significant upheaval in Singapore's trade-reliant economy, warning of possible revisions in the country's gross domestic product (GDP) growth forecast.

He remarked, "It doesn't look like the 10% universal rate is open for negotiation," pointing out that this rate seems to be a fixed minimum tariff devoid of consideration for a nation’s trade balance or existing agreements. The PM's sentiments reflect burgeoning frustrations as Singapore, known for its strong ties with the US, finds itself subject to tariffs intended for other countries deemed to have trade surpluses.

Wong highlighted the potential risks of a global trade war, predicting a future where jobs may be lost and companies might relocate to the US. The dire consequences of these tariffs could disrupt Singapore's economy, impacting sectors such as trade, finance, and tourism. "The government will do everything we can to navigate through the choppy waters and ensure no one is left behind," he stated.

Echoing this discontent, the Workers’ Party (WP) released a statement urging the government to explore all options in responding to these tariffs, including initiating bilateral negotiations and leveraging existing U.S.-Singapore trade agreements. They argued this unprecedented economic act threatens the global trading framework established post-World War II, necessitating a pragmatic and rational approach to address the consequences.

Moreover, the WP expressed that the tariff imposition could provide Singaporean firms a short-term edge, particularly in the semiconductors and tech sectors, as higher tariffs are affecting regional competitors. Their proposals included strengthening social safety nets for workers, emphasizing redundancy insurance, and enhancing retraining programs to support displaced employees. They urged the government to remain agile in a tightening economic environment while advocating for stronger trade ties within ASEAN and larger global partnerships.

In light of these developments, Wong's administration plans to maintain communication with U.S. officials to safeguard trade interests while also exploring new markets. Wong added, “There is a brief window for countries to negotiate… we have to be realistic. Once trade barriers go up, they tend to stay up.” His remarks underscore the difficult landscape ahead for Singapore, marking a substantial shift in its longstanding, open-trade policies.

For further details, visit the original articles on SCMP and Channel News Asia.