National Day Rally: Low US tariff on Singapore is of ‘little comfort', says PM Wong
This is 'because no one knows if – or when – the US might raise the baseline, or set higher tariffs on specific industries like pharmaceuticals and semiconductors,' he said.
What is known is that there will be more trade barriers, and that means small and open economies such as Singapore 'will feel the squeeze'.
This was PM Wong's second National Day Rally since taking the helm in May 2024, and his first since the ruling People's Action Party scored a landslide victory at the 2025 General Election in May.
Singapore also celebrates its 60th year of independence this year, which 'comes at a turning point in global history' and marks the start of a new chapter, said PM Wong.
But this new chapter starts in a 'more troubled and turbulent world', he warned.
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Uncertain times
PM Wong said that, for decades, Singapore benefited from a US-led rules-based global order where all could compete fairly. But the US is now pulling back, weakening the multilateral system, with old norms no longer holding.
'So now, it is every country for itself – in a world where rivalry is intensifying and trust is in short supply,' he added, noting recent geopolitical conflicts in Europe, the Middle East and even in Asia and South-east Asia.
While the road ahead will be tough, Singapore will 'take charge of (its) own destiny', he said.
He acknowledged that the economy 'is on everyone's mind', following the US' 'Liberation Day' tariffs.
Though many deals have been struck and some tariffs lowered, these remain in the range of 10 to 30 per cent, 'the highest US tariff rates in nearly a century'.
The US-China tariff situation has also yet to be resolved. While earlier steep rates have been suspended with ongoing talks, tariffs on many goods remain above 50 per cent and 'deep mistrust' continues.
In response to the changing tariff environment, the Singapore Economic Resilience Taskforce was convened, led by Deputy Prime Minister Gan Kim Yong. The team is negotiating deals to secure Singapore's interests and rolling out support for businesses and workers.
The Singapore Economic Resilience Taskforce, chaired by DPM Gan Kim Yong, is negotiating deals to secure Singapore's interests. PHOTO: BT FILE
But 'the external shifts we see today are not temporary', said PM Wong, warning that the US and China may keep drifting apart, and the global economy will become more contested and fragmented.
That is why Singapore needs a new economic blueprint, and the task force is working 'to review and refresh our economic strategies', in an effort involving younger political office holders, industry partners and union leaders.
The government will relook many key issues, he said, including how to remain competitive amid rapid external changes; how to secure access to green energy; and how to help businesses enter and expand in overseas markets, and become global leaders.
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