Singapore watching US tariff talks ‘very carefully', says foreign minister
SINGAPORE, June 7 — The United States' evolving tariff regime remains in flux and it will take time before the full picture becomes clear, said Singapore's Foreign Minister Dr Vivian Balakrishnan, following a five-day official visit to Washington.
Speaking to The Straits Times, among other Singapore media, via Zoom today, Dr Balakrishnan said ongoing revisions, legal challenges and a likely series of bilateral negotiations with different trade partners mean the eventual shape of American tariffs is still being worked out.
His meetings with senior US officials, senators and members of Congress revealed bipartisan agreement in the US on the importance of trade, investment, intellectual property, reliability, and secure supply chains.
'The relationship with the United States is a vital, critical one for Singapore — it spans the entire gamut... the economy, defence, security, and we're also pursuing emerging opportunities in areas like cyber security and energy,' he reportedly said.
'So it's a relationship which needs to be tended to, and attended to carefully.'
Singapore and the US reaffirmed their strong bilateral ties during his visit, said Dr Balakrishnan, with both sides committed to deeper cooperation in areas such as defence and critical technologies, according to the Ministry of Foreign Affairs.
A key topic during discussions was the impact of US tariffs on global trade, especially for small, open economies like Singapore.
'Any impact on global trade, any friction in the system, will have an impact on an open economy like ours, where our trading volume is three times our GDP,' he reportedly said.
Dr Balakrishnan noted the US has a trade surplus with Singapore and should not impose even the baseline 10 per cent tariff. He said sector-specific duties were more concerning and would be closely scrutinised.
'We're still in the early stages of our discussions and negotiations, so let's watch this space,' he added.
His visit came as the US trade outlook remains uncertain. President Donald Trump's wide-ranging 'Liberation Day' tariffs, unveiled on April 2, have been paused for 90 days, but on June 4, he signed an order doubling tariffs on steel and aluminium imports from 25 per cent to 50 per cent.
Singapore's manufacturing sector has already been feeling the strain. On June 2, purchasing managers' index figures showed a second straight month of contraction in factory activity, reflecting the drag from trade instability.
Dr Balakrishnan also noted signs of openness from Washington. In May, Deputy Prime Minister Gan Kim Yong said early talks were under way about ensuring semiconductor supply and potentially zero tariffs on pharmaceutical exports.
Asked about challenges in engaging US officials, Dr Balakrishnan said: 'They were very welcoming, courteous... I have no anxiety on that front.'
But he warned the global order that underpinned Singapore's success — based on free trade and capital flows — is shifting.
'The anxiety is that the world order that had prevailed for 80 years... is clearly changing, and this period of transition is the time of greatest danger.'
Singapore must stay alert and ready to adapt quickly, he said.
'It is also important to interact frequently, candidly, openly and constructively with our interlocutors, and especially with a superpower which is of great strategic importance to us,' he added.
Before Washington, Dr Balakrishnan visited London, where he met British Foreign Secretary David Lammy to discuss economic ties, strategic issues and potential cooperation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
7 hours ago
- Malay Mail
Trump's threat to cancel Musk's contracts exposes risks of US reliance on SpaceX
WASHINGTON, June 7 — SpaceX's rockets ferry US astronauts to the International Space Station. Its Starlink satellite constellation blankets the globe with broadband, and the company is embedded in some of the Pentagon's most sensitive projects, including tracking hypersonic missiles. So when President Donald Trump threatened on Thursday to cancel Elon Musk's federal contracts, space watchers snapped to attention. Musk, the world's richest person, shot back that he would mothball Dragon—the capsule Nasa relies on for crew flights—before retracting the threat a few hours later. For now, experts say mutual dependence should keep a full-blown rupture at bay, but the episode exposes just how disruptive any break could be. Founded in 2002, SpaceX leapfrogged legacy contractors to become the world's dominant launch provider. Driven by Musk's ambition to make humanity multiplanetary, it is now Nasa's sole means of sending astronauts to the ISS—a symbol of post-Cold War cooperation and a testbed for deeper space missions. Space monopoly? The company has completed 10 regular crew rotations to the orbiting lab and is contracted for four more, under a deal worth nearly US$5 billion. That's just part of a broader portfolio that includes US$4 billion from Nasa for developing Starship, the next-generation megarocket; nearly US$6 billion from the Space Force for launch services; and a reported US$1.8 billion for Starshield, a classified spy satellite network. Were Dragon grounded, the United States would again be forced to rely on Russian Soyuz rockets for ISS access — as it did between 2011 and 2020, following the Space Shuttle's retirement and before Crew Dragon entered service. 'Under the current geopolitical climate, that would not be optimal,' space analyst Laura Forczyk told AFP. Nasa had hoped Boeing's Starliner would provide redundancy, but persistent delays—and a failed crewed test last year—have kept it grounded. Even Northrop Grumman's cargo missions now rely on SpaceX's Falcon 9, the workhorse of its rocket fleet. The situation also casts a shadow over Nasa's Artemis programme. A lunar lander variant of Starship is slated for Artemis III and IV, the next US crewed Moon missions. If Starship were sidelined, rival Blue Origin could benefit—but the timeline would almost certainly slip, giving China, which aims to land humans by 2030, a chance to get there first, Forczyk warned. 'There are very few launch vehicles as capable as Falcon 9 — it isn't feasible to walk away as easily as President Trump might assume,' she said. Nasa meanwhile appeared eager to show that it had options. 'Nasa is assessing the earliest potential for a Starliner flight to the International Space Station in early 2026, pending system certification and resolution of Starliner's technical issues,' the agency said in a statement Friday to AFP. Still, the feud could sour Trump on space altogether, Forczyk cautioned, complicating Nasa's long-term plans. SpaceX isn't entirely dependent on the US government. Starlink subscriptions and commercial launches account for a significant share of its revenue, and the company also flies private missions. The next, with partner Axiom Space, will carry astronauts from India, Poland, and Hungary, funded by their respective governments. Private power, public risk But losing US government contracts would still be a major blow. 'It's such a doomsday scenario for both parties that it's hard to envision how US space efforts would fill the gap,' Clayton Swope, deputy director of the Aerospace Security Project at the Center for Strategic and International Studies, told AFP. 'Both sides have every reason to bridge the disagreement and get back to business.' Signs of a rift emerged last weekend, when the White House abruptly withdrew its nomination of e-payments billionaire Jared Isaacman — a close Musk ally who has twice flown to space with SpaceX — as Nasa administrator. On a recent podcast, Isaacman said he believed he was dropped because 'some people had some axes to grind, and I was a good, visible target.' The broader episode could also reignite debate over Washington's reliance on commercial partners, particularly when one company holds such a dominant position. Swope noted that while the US government has long favored buying services from industry, military leaders tend to prefer owning the systems they depend on. 'This is just another data point that might bolster the case for why it can be risky,' he said. 'I think that seed has been planted in a lot of people's minds — that it might not be worth the trust.' — AFP
New Straits Times
8 hours ago
- New Straits Times
Thailand, Cambodia reinforcing troops on disputed border after May skirmish
BANGKOK: Thailand has reinforced its military presence along a disputed border with Cambodia, following an increase in troops on the other side, Thailand's defence minister said on Saturday. Tensions between the two countries have been simmering since a Cambodian soldier was killed on May 28 in a brief conflict in an undemarcated border area. For days, the two governments have been exchanging carefully worded statements committing to dialogue. But Phumtham Wechayachai, who also serves as Thailand's deputy prime minister, said Cambodia had rejected proposals in bilateral talks held on Thursday that could have led to a de-escalation. "Furthermore, there has been a reinforcement of military presence, which has exacerbated tensions along the border," Phumtham said in a statement. "Consequently, the Royal Thai Government has deemed it necessary to implement additional measures and to reinforce our military posture accordingly." He did not provide details on the extent of reinforcements by either side. In a separate statement on Saturday, the Thai army said Cambodian soldiers and civilians had repeatedly made incursions into Thailand's territory. "These provocations, and the build-up of military forces, indicate a clear intent to use force," the Thai army said, adding that it would take control of all Thai checkpoints along the border with Cambodia. Although border checkpoints between the two countries remain open, they may gradually become more restrictive, ranging from earlier closing times to complete closures, depending on security assessments in each area, Thai army spokesperson Winthai Suvaree said. Thailand currently operates 17 official border crossings with Cambodia, spanning seven provinces along their shared 817km frontier, government data shows. A spokesperson for Cambodia's Foreign Ministry did not immediately respond to questions from Reuters on the Thai army's announcement. "This is our stance, not to initiate conflict, but to defend ourselves," Cambodian Prime Minister Hun Manet said in speech earlier on Saturday. "Our guiding principles are ... respect for international legal frameworks. These grounded strategies are key to safeguarding our nation's sovereignty," he said, adding that its armed forces were ready to defend against aggression. Thailand remains committed to pursuing bilateral dialogue as a means to restore stability, a spokesperson for the Ministry of Foreign Affairs said on Saturday. "The Thai side reaffirms its readiness to engage through established bilateral mechanisms, particularly the upcoming meeting of the Thailand-Cambodia Joint Boundary Commission (JBC), scheduled for June 14," Foreign Ministry spokesperson Nikorndej Balankura told reporters. "We sincerely hope that the negotiations will proceed in good faith," he added. The military reinforcements come despite efforts by Malaysian Prime Minister Anwar Ibrahim, who is the current chair of the Asean bloc, and China to reduce tensions. Thailand and Cambodia have for more than a century contested sovereignty at various undemarcated points along their 817km land border, which was first mapped by France in 1907 when Cambodia was its colony. Tension escalated in 2008 over an 11th-century Hindu temple, leading to skirmishes over several years and at least a dozen deaths, including during a week-long exchange of artillery in 2011. Current governments in both countries, however, have enjoyed warm ties. Former leaders Thaksin Shinawatra of Thailand and Cambodia's Hun Sen have had a close relationship, and Thaksin's daughter and Hun Sen's son are now the incumbent prime ministers of their countries. Still, nationalist sentiment has risen in Thailand and the Thai military said on Friday it is ready to launch a "high-level operation" to counter any violation of its sovereignty. Cambodia said this week it would refer disputes over four parts of the border to the International Court of Justice and asked Thailand to cooperate. Phumtham reiterated in his Saturday statement that Thailand does not recognise the jurisdiction of the court and proposed that all boundary-related issues be resolved through bilateral negotiations.
Free Malaysia Today
8 hours ago
- Free Malaysia Today
Trump-Musk showdown threatens US space plans
Founded in 2002, SpaceX leapfrogged legacy contractors to become the world's dominant launch provider. (File pic) WASHINGTON : SpaceX's rockets ferry US astronauts to the International Space Station. Its Starlink satellite constellation blankets the globe with broadband, and the company is embedded in some of the Pentagon's most sensitive projects, including tracking hypersonic missiles. So when president Donald Trump threatened on Thursday to cancel Elon Musk's federal contracts, space watchers snapped to attention. Musk, the world's richest person, shot back that he would mothball Dragon – the capsule NASA relies on for crew flights – before retracting the threat a few hours later. For now, experts say mutual dependence should keep a full-blown rupture at bay, but the episode exposes just how disruptive any break could be. Founded in 2002, SpaceX leapfrogged legacy contractors to become the world's dominant launch provider. Driven by Musk's ambition to make humanity multiplanetary, it is now NASA's sole means of sending astronauts to the ISS – a symbol of post–Cold War cooperation and a testbed for deeper space missions. The company has completed 10 regular crew rotations to the orbiting lab and is contracted for four more, under a deal worth nearly US$5 billion. That's just part of a broader portfolio that includes US$4 billion from NASA for developing Starship, the next-generation megarocket; nearly US$6 billion from the Space Force for launch services; and a reported US$1.8 billion for Starshield, a classified spy satellite network. Were Dragon grounded, the US would again be forced to rely on Russian Soyuz rockets for ISS access – as it did between 2011 and 2020, following the Space Shuttle's retirement and before Crew Dragon entered service. 'Under the current geopolitical climate, that would not be optimal,' space analyst Laura Forczyk told AFP. NASA had hoped Boeing's Starliner would provide redundancy, but persistent delays – and a failed crewed test last year – have kept it grounded. Even Northrop Grumman's cargo missions now rely on SpaceX's Falcon 9, the workhorse of its rocket fleet. The situation also casts a shadow over NASA's Artemis program. A lunar lander variant of Starship is slated for Artemis III and IV, the next US crewed Moon missions. If Starship were sidelined, rival Blue Origin could benefit – but the timeline would almost certainly slip, giving China, which aims to land humans by 2030, a chance to get there first, Forczyk warned. 'There are very few launch vehicles as capable as Falcon 9 – it isn't feasible to walk away as easily as President Trump might assume,' she said. NASA meanwhile appeared eager to show that it had options. 'NASA is assessing the earliest potential for a Starliner flight to the International Space Station in early 2026, pending system certification and resolution of Starliner's technical issues,' the agency said in a statement Friday to AFP. Still, the feud could sour Trump on space altogether, Forczyk cautioned, complicating NASA's long-term plans SpaceX isn't entirely dependent on the US government. Starlink subscriptions and commercial launches account for a significant share of its revenue, and the company also flies private missions. The next, with partner Axiom Space, will carry astronauts from India, Poland, and Hungary, funded by their respective governments. But losing US government contracts would still be a major blow. 'It's such a doomsday scenario for both parties that it's hard to envision how US space efforts would fill the gap,' Clayton Swope, deputy director of the Aerospace Security Project at the center for strategic and international studies, told AFP. 'Both sides have every reason to bridge the disagreement and get back to business.' Signs of a rift emerged last weekend, when the White House abruptly withdrew its nomination of e-payments billionaire Jared Isaacman – a close Musk ally who has twice flown to space with SpaceX – as NASA administrator. On a recent podcast, Isaacman said he believed he was dropped because 'some people had some axes to grind, and I was a good, visible target.' The broader episode could also reignite debate over Washington's reliance on commercial partners, particularly when one company holds such a dominant position. Swope noted that while the US government has long favored buying services from industry, military leaders tend to prefer owning the systems they depend on. 'This is just another data point that might bolster the case for why it can be risky,' he said. 'I think that seed has been planted in a lot of people's minds – that it might not be worth the trust.'
