SINGAPORE (April 4): Singapore must brace for more shocks to come and not be lulled into complacency as the world enters a new phase that is more arbitrary, protectionist, and dangerous, said Prime Minister Lawrence Wong in a comment on the implications of the US’ new tariffs.

Wong, who is also finance minister, said that Singapore will stay vigilant, build up its capabilities, and strengthen its network of partnerships with like-minded countries to face a more troubled world.

“The global calm and stability we once knew will not return anytime soon. We cannot expect that the rules which protect small states will still hold.

“I am sharing this with you so that we can all be mentally prepared and not be caught off guard,” he said in a video statement uploaded on YouTube on Friday.

Calling on Singaporeans to stay resolute and united, Wong said that Singapore must be clear-eyed about the dangers building up in a world where global institutions are getting weaker, international norms are eroding, and more and more countries will act based on narrow self-interest.

Wong said the recent announcement by the US leaves no room for doubt that the world is changing in ways that will disadvantage small open economies like Singapore and that the era of rules-based globalisation and free trade is over.

He said the US’ new approach of reciprocal tariffs, country by country, is a complete rejection of the World Trade Organization framework that has brought unprecedented stability and prosperity to the world and the US.

“To be clear, the system is not perfect. Singapore and many others have long called for reform to update the rules and make the system better, but what the US is doing now is not reform. It is abandoning the entire system it had created,” he added.

Wong said that although the direct impact on Singapore may be limited for now, as it is placed in the lowest base tier with a tariff of 10%, there are wider and more profound consequences if other countries adopt the same approach as the US.

“It will spell trouble for all nations, especially small ones like Singapore. We risk being squeezed out, marginalised, and left behind. We can also expect a strong global response to America’s tariffs,” he said.

Wong said that although Singapore has decided not to impose retaliatory tariffs, other countries may not exercise the same restraint.

The prime minister also warned that the likelihood of a full-blown global trade war is growing.

He noted that the impact of the higher tariffs, combined with the uncertainty of what other countries may do next, will weigh heavily on the global economy.

“International trade and investments will suffer, and global growth will slow. Singapore will take a bigger hit than others because of our heavy reliance on trade,” he said.

Uploaded by Chng Shear Lane