Over 80% of Singapore companies expect US tariffs to hurt business

Independent Singapore

22-05-2025

SINGAPORE: More than 80 per cent of Singapore companies expect US tariffs to hurt their business over the next six months, a new survey has found. In response, the Singapore Business Federation (SBF) has introduced a new guide aimed at helping companies – especially small and medium-sized enterprises (SMEs) – navigate the growing uncertainty.
The survey, carried out between April 11 and 23, gathered responses from nearly 300 businesses across a range of industries. The findings suggest that many local firms are bracing for a tough road ahead. About half of the respondents reported direct or indirect exposure to the US market, while nearly 20 per cent said that more than half of their annual revenue comes from American customers.
Short-term expectations are grim. Three in four businesses anticipate a drop in revenue, and half believe their operating costs will climb. For some, the impact has already begun: 40 per cent say they're already feeling the squeeze from tariffs. SMEs – often less resilient than larger firms – are likely to be the hardest hit.
But it's not just about costs. Businesses also expressed concerns about currency volatility, supply chain disruptions, and the risk of retaliatory trade measures. Seven in ten are planning to raise prices, although many say they'll try to absorb some of the added costs in order to stay competitive.
To cope with the financial strain, around 60 per cent of businesses say they'll need more working capital. Many are also calling on the government for support in the form of tax relief, funding schemes, and clearer guidance on how to make better use of existing free trade agreements.
To help companies respond to these challenges, the SBF has teamed up with the Federation of Chinese Chambers of Commerce and Industry's Future Trade and Investment Centre to launch a new guide titled *Navigating US Tariffs*.
The guide breaks down practical steps businesses can take depending on how long the disruption lasts. In the first three months, companies are urged to assess risks and review their financial health.
Between four and twelve months, the focus shifts to supply chain redesign and financial planning. Beyond that, the guide recommends longer-term strategies such as digitalisation, innovation, and business transformation to build resilience.