SINGAPORE – US President Donald Trump’s recent tariffs might lead to a global trade war if other countries retaliate, Prime Minister Lawrence Wong said on April 5 as he warned Singaporeans to brace for more shocks ahead.

“Today, Singapore stands on a strong foundation, but all of you know that we are entering a world that is going to be more dangerous and unpredictable,” he added.

On April 2, Mr Trump announced a decision to impose a 10 per cent tariff on most goods imported into the US from Singapore and key partners, with higher duties for many other countries.

For instance, goods from China were hit with a 34 per cent tariff. Beijing retaliated on April 4 with a slew of measures, including a 34 per cent tariff on US goods.

“China has already retaliated with its own tariffs, and other countries will soon follow I am sure. We may well end up with a full-blown global trade war,” said PM Wong.

“So, we must brace ourselves for more shocks to come,” he added, speaking at the launch of the Marsiling-Yew Tee Masterplan in Yew Tee Square.

“In a time like this, it is more important than ever to cherish and to protect what we have in Singapore.”

This includes a “society built on mutual care and respect, regardless of race, language or religion”, a meritocratic system that allows Singaporeans to chart their own paths, and a spirit of solidarity and unity that keeps the country moving forward, he noted.

“So while there are dark clouds ahead, we can look forward still with confidence in ourselves, because here in Singapore, we have always faced challenges with grit and determination, like we did when we overcame the Covid-19 pandemic,” he said.

His comments came just a day after he warned Singaporeans to be clear-eyed about the dangers ahead, as global institutions get weaker and international norms are eroded.

In a five-minute video uploaded to his social media on April 4, he described the US announcement as a “seismic change in the global order”, pointing out that the era of rules-based globalisation and free trade was over.

On April 3, Deputy Prime Minister Gan Kim Yong also spoke on the impact of the US move to subject imports to wide-ranging tariffs. He said Singapore is reassessing its 2025 growth forecast, and is prepared to provide support for households and businesses if the situation deteriorates.

At a separate community event on April 5, Foreign Minister Vivian Balakrishnan said the US tariffs are a “profound setback” to the way the world has operated for the last 80 years, when there were generally progressive economic integration and growth of global supply chains.

Now that this is changing, he warned that there would be a “major economic impact”.

“I expect to see high inflation. I expect to see slower growth rates,” he said, adding that he also expected to see a lot of pressure on how countries reach agreements with each other.

He also said he was worried that these global changes would affect the ability of countries to work collectively to tackle global issues like pandemics, climate change and the emergence of artificial intelligence.

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That said, he added that Singapore is in a fortunate state with its fiscal reserves, it has also invested into its defence consistently, and the country has a reputation of being safe, stable, and reliable.

“We’ve got long term challenges, but Singapore has agency, Singapore has options,” he said, adding that the Republic is working with Asean and other countries on trade.

“The US pulling itself out of this system is a major setback, but the US constitutes 14 per cent of global trade, there’s still another 86 per cent of global trade,” he said.

“My hope is that the rest of us will double down on integration, on win-win solutions, on signing agreements that we will abide with fully, both by spirit and the letter of the law.”

  • Additional reporting by Christine Tan
  • Chin Soo Fang is a senior correspondent at The Straits Times covering topics such as community, politics, social issues, consumer, culture and heritage.

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