In a sombre and direct message to Singaporeans, Prime Minister Lawrence Wong urged the nation to brace for a more unstable and dangerous global environment. He made these remarks in a speech posted online on April 4, 2025, following a dramatic announcement by US President Donald Trump to impose a 10% tariff on most goods imported from Singapore and several other countries.
PM Wong described the new tariff measures as a “seismic shift” in global trade and warned that this signals the end of an era defined by rules-based globalisation. He highlighted how the global order — once supported by clear norms and institutions such as the World Trade Organization (WTO) — is now eroding rapidly. The Prime Minister emphasized that the world is transitioning into a phase where nations act primarily based on self-interest, often using pressure or force to achieve their goals.
“The global calm and stability we once knew will not return anytime soon,” he said. “We cannot expect that the rules which protected small states will still hold.”
The US’s new tariff policy, which disregards multilateral frameworks like the WTO in favour of a bilateral, transactional approach, marks a sharp turn away from long-standing global trade practices. PM Wong acknowledged that while Singapore is grouped in the lowest tariff tier for now, the implications of this move go far beyond the immediate economic impact.
He pointed out that Singapore’s heavy reliance on trade puts it in a vulnerable position amid rising protectionism. If more countries were to follow the US’s lead, the multilateral trading system could collapse, marginalising smaller nations and threatening global economic stability. “We risk being squeezed out, marginalised and left behind,” he warned.
Recalling the trade wars of the 1930s, PM Wong drew a parallel to the prelude of World War II, cautioning that no one could predict how the current tensions might evolve. He expressed concern that retaliatory measures by other countries could spark a full-scale global trade war, resulting in slowed investment, disrupted trade flows, and weakened global growth — all of which would disproportionately affect Singapore.
Deputy Prime Minister Gan Kim Yong also weighed in on the developments, stating on April 3 that the Singapore government is reassessing its 2025 economic forecast in light of the new US tariffs. He affirmed that support measures for households and businesses are being considered if conditions worsen.
DPM Gan noted Singapore’s existing Free Trade Agreement with the US and indicated that the government will seek clarity from Washington on the rationale behind these sudden tariffs.
Despite the uncertainty, PM Wong expressed confidence that Singapore is more prepared than most countries to face such external shocks. He cited the nation’s financial reserves, social cohesion, and resilience as key strengths. However, he called for vigilance and unity, stressing the importance of strengthening partnerships with like-minded nations and building internal capabilities.
“This is not a time for complacency,” he said. “The risks are real. The stakes are high.”
He concluded with a rallying call for unity and resolve, stating that if Singaporeans stay together, the country will not only survive these challenges, but continue to thrive in an increasingly unpredictable world.
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