CNA938 Rewind - As the Trump Administration sees a reinstatement of their aggressive tariff policy, could we see more uncertainty for Singapore?
CNA938 Rewind
Play
U.S President Donald Trump can celebrate a temporary reprieve for his aggressive tariff strategy, after an appeals court preserved his sweeping import duties on China and other trading partners -- for now. The short-term relief will allow the appeal process to proceed, after the U.S Court of International Trade barred most of the tariffs announced since Trump took office. Lance Alexander and Daniel Martin learn more from Kevin Chen, Associate Research Fellow with the U.S. Programme, Institute of Defence and Strategic Studies, RSIS.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
26 minutes ago
- CNA
More businesses look to Singapore for smooth flow of goods amid tariff volatility, say logistics firms
SINGAPORE: Logistics companies said that more businesses are looking to Singapore as an alternative route to ensure a smooth flow of their goods, amid global trade volatility sparked by sweeping tariffs imposed by the United States. Port operator PSA Singapore and Changi Airport announced an increase in air and sea cargo volumes from January to April this year, compared with the same period in 2024. PSA said it handled 14.1 million twenty-foot equivalent unit (TEU) containers, a jump of around 6 per cent, according to a written statement. Meanwhile, data published on Changi Airport's website on May 22 showed that air freight movements were up over 2 per cent, for the same period. SEA FLOWS Shipping company Maersk has reported higher volumes handled in the region, and it expects the trend to continue into the second quarter with front-loading activity picking up. Mr Bhavan Vempati, Maersk's head of Asia Market, Ocean Product, told CNA he is seeing some pent-up demand from customers as the 90-day US-China tariff truce gives businesses more clarity. He added that the clarity has helped customers in their supply chain planning and inventory management. 'I would say Singapore is a critical part of the infrastructure, both in terms of being a transshipment hub for Asia … an important hub for Maersk, and (when) we look at our cargo flowing eastbound … (it) is also a key connecting point for our services within Asia,' said Mr Bhavan. Geopolitical uncertainties caused by the ongoing US tariffs have led some firms to rush shipments out while others are taking a wait-and-see approach, he added. But Mr Bhavan noted that Singapore's status as an integrated transshipment hub allows Maersk to help with managing customers' inventory amid the ongoing tariff situation, providing them with options to move or hold their goods. He said that some customers are diverting cargo to other destinations and different market segments. AIR FLOWS Logistics company FedEx added that demand for air freight remains strong in Southeast Asia, especially as US tariffs prompt businesses to reroute shipments. Ms Bianca Wong, FedEx's vice president of Southeast Asia operations, said that Singapore has an advantageous position as the company's South Pacific hub, where cargo is consolidated from the region before being shipped worldwide. She added that Singapore's role as a trading hub helps clients who are facing end-to-end supply chain challenges after shifting their manufacturing base to a different location. 'This is where we also see the advantage of Singapore, where, when Southeast Asia grow(s), we see more volume coming to Singapore as transhipments," said Ms Wong. The company launched a new direct cargo flight from Singapore to the US on Apr 15, as it announced further investments in its air connectivity networks. Ms Wong added that Singapore's air and road connections to the rest of Southeast Asia will allow the country to benefit as a transshipment hub as more manufacturers invest in the region. MAINTAINING COMPETITIVENESS Analysts said continued infrastructure investment, such as developments at Tuas Port, will be key in keeping Singapore competitive and efficient as a global trade hub. "In order to enhance Singapore's status as a global trading hub, it is important to continue to invest in infrastructure, and this basically means upgrading port facilities, investing in digitalisation, as well as to help Singapore's ports to remain competitive and efficient,' said Mr Barnabas Gan, group chief economist at RHB Bank. In a statement, PSA said it is investing in cutting-edge technologies, automation and artificial intelligence-driven analytics to optimise vessel turnaround times. The port operator added that these efforts ensure operational agility and reliability, while maintaining the smooth flow of goods. Mr Gan noted that it is important to develop strategic partnerships within the Association of Southeast Asian Nations.
AsiaOne
an hour ago
- AsiaOne
How Trump's trade war is upending the global economy, World News
US President Donald Trump's tariff decisions since he took office on Jan 20 have shocked financial markets and sent a wave of uncertainty through the global economy. Here is a timeline of the major developments: Feb 1 - Trump imposes 25 per cent tariffs on Mexican and most Canadian imports and 10 per cent on goods from China, demanding they curb the flow of fentanyl and illegal immigrants into the United States. Feb 3 - Trump suspends his threat of tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement. The US does not reach such a deal with China. Feb 7 - Trump delays tariffs on de minimis, or low-cost, packages from China until the Commerce Department can confirm that procedures and systems are in place to process them and collect tariff revenue. Feb 10 - Trump raises tariffs on steel and aluminium to a flat 25 per cent "without exceptions or exemptions". March 3 - Trump says 25 per cent tariffs on goods from Mexico and Canada will take effect from March 4 and doubles fentanyl-related tariffs on all Chinese imports to 20 per cent. March 5 - The president agrees to delay tariffs for one month on some vehicles built in Canada and Mexico after a call with the CEOs of General Motors and Ford and the chair of Stellantis. March 6 - Trump exempts goods from Canada and Mexico under a North American trade pact for a month from the 25 per cent tariffs. March 26 - Trump unveils a 25 per cent tariff on imported cars and light trucks. April 2 - Trump announces global tariffs with a baseline of 10 per cent across all imports and significantly higher duties on some of the US' biggest trading partners. April 9 - Trump pauses for 90 days most of his country-specific tariffs that kicked in less than 24 hours earlier following an upheaval in financial markets that erased trillions of dollars from bourses around the world. The 10 per cent blanket duty on almost all US imports stays in place. Trump says he will raise the tariff on Chinese imports to 125 per cent from the 104 per cent level that took effect a day earlier. This pushes the extra duties on Chinese goods to 145 per cent, including the fentanyl-related tariffs imposed earlier. April 13 - The US administration grants exclusions from steep tariffs on smartphones, computers and some other electronics imported largely from China. April 22 - The Trump administration launches national security probes under Section 232 of the Trade Act of 1962 into imports of both pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors. May 4 - Trump imposes a 100 per cent tariff on all movies produced outside the US May 9 - Trump and British Prime Minister Keir Starmer announce a limited bilateral trade agreement that leaves in place 10 per cent tariffs on British exports, modestly expands agricultural access for both countries and lowers prohibitive US duties on British car exports. May 12 - The US and China agree to temporarily slash reciprocal tariffs. Under the 90-day truce, the US will cut the extra tariffs it imposed on Chinese imports to 30 per cent from 145 per cent, while China's duties on US imports will be slashed to 10 per cent from 125 per cent. May 13 - The US cuts the low value "de minimis" tariff on China shipments, reducing duties for items valued at up to $800 to 54 per cent from 120 per cent. May 23 - Trump says he is recommending a straight 50 per cent tariff on goods from the European Union starting on June 1. He also warned Apple it would face 25 per cent tariff if phones it sold in the US were manufactured outside of the country. May 25 - Trump backpedals on his threat to slap 50 per cent tariffs on imports from the EU, agreeing to extend the deadline for talks between the US and the block until July 9. May 28 - A US trade court blocked Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority by imposing across-the-board duties on imports from US trade partners. The Trump administration said it would appeal the ruling. May 29 - A federal appeals court temporarily reinstates the most sweeping of Trump's tariffs, saying it was pausing the lower court's ruling to consider the government's appeal, and ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9. May 30 - At a rally in Pennsylvania, Trump says he plans to increase tariffs on imported steel and aluminium to 50 per cent from 25 per cent. [[nid:718546]]
AsiaOne
2 hours ago
- AsiaOne
China rejects Trump's accusation that it breached Geneva trade deal, World News
China said on Monday (June 2) that US President Donald Trump's accusations that Beijing had violated the consensus reached in Geneva trade talks were "groundless", and promised to take forceful measures to safeguard its interests. The comment by the commerce ministry was in response to Trump's remarks on Friday that China had breached a bilateral deal to roll back tariffs. The ministry said China had implemented and actively upheld the agreement reached last month in Geneva, while the US had introduced multiple "discriminatory restrictive" measures against China. Those measures included issuing guidance on AI chip export controls, halting sales of chip design software to China and revoking visas for Chinese students, the ministry added. "The US government has unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations," the ministry said in a statement. It did not elaborate on what forceful measures it might take in response. Beijing and Washington agreed in mid-May in Geneva to pause triple-digit tariffs for 90 days. In addition, China also promised to lift trade countermeasures that restricted its exports of the critical metals needed for US semiconductor, electronics and defence production. Trump on Friday also announced a doubling of import tariffs on steel and aluminium to 50 per cent. While China is the world's largest steel producer and exporter, it ships very little to the United States after a 25 per cent tariff imposed in 2018 shut most Chinese steel out of the market. China ranks third among aluminium suppliers. [[nid:717864]]
