Singapore’s Dual Strategy to Navigate US Tariffs and Global Uncertainty

As the global economy faces growing instability from geopolitical tensions and trade disruptions—particularly the imposition of new US tariffs—Singapore is taking proactive steps to protect its economy and long-term interests. The government is pursuing a two-pronged approach: immediate domestic support for affected businesses and workers, and a forward-looking foreign policy to strengthen the country’s global relevance.

Singapore adapts swiftly to global trade and policy shifts

1. Economic Resilience Taskforce: Supporting Local Businesses and Workers

To address the immediate impact of trade disruptions, the government has established the Economic Resilience Taskforce, led by Deputy Prime Minister Gan Kim Yong. The taskforce includes ministers and representatives from labor unions, employer groups, and the business community.

Key Focus Areas:

• Sense-making and Communication

The taskforce will monitor global trade developments, particularly tariffs, and help businesses understand the implications for their operations. It will also ensure that companies stay informed and are better equipped to respond quickly to evolving conditions.

• Immediate Support for Businesses and Workers

Existing support schemes are being reviewed and may be enhanced to address current challenges. Special attention is being paid to industries most impacted by trade disruptions, such as manufacturing, logistics, finance, semiconductors, and biomedical sectors. Vulnerable groups such as fresh graduates and mature workers are also a key focus, as they may face greater employment risks.

• Long-term Industry Transformation

Beyond short-term support, the taskforce is helping businesses adapt to the future economy. This includes encouraging market diversification, enhancing supply chain resilience, and promoting innovation and productivity. The aim is to ensure Singapore remains a competitive and attractive hub for investment and talent.

2. Foreign Policy Strategy: Adapting to a Changing Global Order

In parallel with its domestic efforts, Singapore is adjusting its foreign policy to navigate a rapidly evolving international landscape. In a major speech at the S Rajaratnam Lecture, Prime Minister Lawrence Wong emphasized the need for Singapore to actively shape its future rather than remain a passive observer.

Three Strategic Thrusts:

• Global Stewardship

Singapore will continue to uphold international law and promote multilateralism. The country aims to play a constructive role in global forums by building consensus and finding practical solutions. To support this, a new Development Partnership Office has been set up to coordinate international development assistance and share Singapore’s experiences with other nations.

• Deeper ASEAN Integration

ASEAN remains a central pillar of Singapore’s foreign policy. The country is committed to advancing regional cooperation through initiatives like the ASEAN Digital Economy Framework Agreement and the ASEAN Power Grid. Singapore also advocates for full tariff elimination within ASEAN to deepen regional economic ties. As the upcoming ASEAN Chair in 2027, Singapore intends to use the role to further integration efforts.

• Expanding Global Partnerships

Singapore is broadening its international outreach beyond traditional markets by engaging more deeply with regions like Africa, Latin America, and the Middle East. The government plans to establish new diplomatic missions to facilitate greater trade, investment, and collaboration in these high-potential areas.

Balancing Relations with Major Powers

Singapore continues to maintain strong, stable relationships with both the United States and China. As competition between these powers intensifies, Singapore is committed to staying neutral, principled, and focused on its national interest. This balancing act requires agility, credibility, and consistent diplomacy.

By maintaining trust and acting in a fair and independent manner, Singapore seeks to preserve space for constructive engagement with all global partners.

Looking Ahead: Resilience Through Adaptability

Singapore’s response to global uncertainty is both pragmatic and forward-looking. The Economic Resilience Taskforce ensures that businesses and workers receive timely support, while the broader foreign policy strategy positions the country to remain relevant and influential on the world stage.

As Prime Minister Wong said, “We cannot control the global currents, but we can chart our own course with courage, foresight, and skill.” Singapore’s approach reflects a nation determined not just to withstand global disruptions—but to thrive beyond them.