New US Tariffs May Harm Singapore Firms; Nearly Half to Pass on Costs

A rapid survey by the American Chamber of Commerce in Singapore (AmCham) found that nearly half (45%) of companies in Singapore plan to pass on the increased costs due to new US tariffs to their customers.

The American Chamber of Commerce in Singapore said on Wednesday (April 2) that other companies intend to reduce their dependence on high-tariff markets by diversifying their supply chains or seize the opportunity to take market share from slower-adapting competitors.

Among the 36 respondents surveyed, more than two-thirds said that reciprocal tariffs that countries imposing tariffs on US imports may levy are the biggest concerns for their businesses compared to existing trade measures.

Nearly seven in ten (69%) companies said they expect new tariffs to have a significant or moderate negative impact on their business.

The survey results were released before the White House announced a comprehensive tariff imposition on US trading partners on Wednesday afternoon.

Although no specific details were disclosed, US President Donald Trump called this move "Liberation Day."

Asian-Pacific stock markets were mixed on Wednesday, with the Straits Times Index in Singapore falling 0.4% or 14.64 points to 3,954.21.

About 20% of respondents said they believe these measures will not impact their business.

Frank Debets, Head of Asia Pacific Customs and Trade at PwC Singapore, disagreed with this view. He said it would be "surprising" if the companies not affected by the report were completely immune to the ripple effects.

For example, he said their suppliers and customers might be affected, harming their ability to buy or sell products or services, or they might encounter retaliatory measures elsewhere.

He added, "If anyone thinks tariffs won't affect them, then they'd better do the necessary due diligence to ensure their view is well-founded."

This rapid survey was jointly conducted by the American Chamber of Commerce in Singapore, BowerGroupAsia in Singapore, and PwC Singapore. Survey responses were collected between March 3 and 10.