CNA Explains: Trump's tariff turmoil – what options does Singapore have?

At midnight on Wednesday (Apr 9), steep tariffs on “nations that treat (the United States) badly” went into effect. The all-round volatility that's marked the Trump administration are expected to cause a decline in global commerce. Increased government spending on public services, and subsidies for businesses and households, can significantly help in stabilising Singapore’s economy, said Asst Prof Ye Guangzhi from NTU’s economics department. Short-term measures such as corporate income tax rebates can help businesses overcome issues caused by global trade disruptions, while Community Development Council (CDC) cash vouchers can help households offset the rising cost of living, he added. “These policy tools are already (being used) by the Singaporean government and will remain useful for handling the recent challenges,” said Asst Prof Ye. NTU's Asst Prof Ye said that while fiscal and monetary policies can mitigate short-term fluctuations, regional cooperation and developing comparative advantages would be most important and effective. “They offer greater resilience, a more sustained long-term impact and more fundamental improvements in addressing the uncertainties of global trade."

- Facilitated by CCO.

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