Singapore establishes an economic resilience task force to address the US-China tariff war; the President dissolves Parliament to initiate May elections; policies at the Hainan Free Trade Port aim to reduce business costs.

Taiwan • Business • 04/16 14:20
Singapore establishes an economic resilience task force to address the US-China tariff war; the President dissolves Parliament to initiate May elections; policies at the Hainan Free Trade Port aim to reduce business costs.

In April 2025, Singapore established the "Economic Resilience Taskforce" led by Deputy Prime Minister Lawrence Wong to tackle the effects of the US-China trade war. Meanwhile, Singapore's President Tharman dissolved Parliament on April 15, announcing a general election to be held on May 3. This is the first time Prime Minister Lawrence Wong is leading the People's Action Party in an election. Meanwhile, China's Hainan Free Trade Port is reducing corporate costs through tax incentives to attract businesses by focusing on changes in international trade.

Key Updates

04/17 00:49

Trump's Second Term Tariff Policy Escalation: Reshaping the Dynamics of the US-China Trade War and Its Impact on Global Markets

In the spring of 2025, during his second term, former President of the United States, Donald Trump, imposed new tariffs as high as 145% on Chinese goods, bringing the total tariffs on some products to 245%. This action provoked a strong reaction from China and increased uncertainty in global markets. The Trump administration claimed that the policy was intended to protect American manufacturing and combat fentanyl smuggling, but the presence of exemptions and deferrals in its implementation suggested a balancing act between economic pressure and political considerations. This article examines the specifics of the Trump administration's tariff policy and China's response, and analyzes the latest developments in the trade standoff.

04/16 21:48

Federal Reserve Chair Powell warns: the Trump administration's tariff policy may result in inflation and economic growth difficulties

On April 16, 2025, Federal Reserve Chairman Jerome Powell warned about the Trump administration's high tariff policy at the Chicago Economic Club, stating that it could lead to rising inflation and slowing economic growth, challenging the Fed's goals of maintaining price stability and promoting employment. Powell pointed out that if both inflation and unemployment rates rise simultaneously, the Fed will face difficult policy choices and may need to choose between raising and lowering interest rates. These remarks led to a drop in U.S. stocks, as the market expressed concerns over policy uncertainty.

04/16 18:21

Global Tariff Storm: Trade Alliance Expands in the European Market, Indian Stock Market Stays Strong, Taiwanese Steel Mills Face Pressure, Bank of Canada Takes a Wait-and-See Approach

In April 2025, President Trump of the United States reinstated reciprocal tariffs, leading to global market turbulence. BizLink-KY from Taiwan expanded its presence in the European market to mitigate risk, while India's stock market continued to show positive returns thanks to strong fundamentals and minimal exposure to the U.S. Major Taiwanese stainless steel manufacturers, Yieh United Steel and Tang Eng, faced pressure due to fluctuations in raw material prices and a sudden drop in demand. The Bank of Canada halted interest rate cuts amid an uncertain trade environment, adopting a dual-scenario forecasting model to manage economic impacts.

04/16 15:48

TSMC's earnings call presents a positive outlook, while ASML's orders drop by 45%, leading to uncertainty in the semiconductor market.

TSMC will hold an investor conference on April 17, with the market's attention on its operational outlook for 2025. Despite geopolitical and tariff pressures, TSMC's first-quarter revenue increased by 42% compared to the same period last year, with a gross margin of 57.3%. At the same time, ASML saw a 45% drop in new orders in the first quarter, indicating a conservative approach to equipment investment. In anticipation of potential U.S. tariffs, several major tech companies have increased their orders with TSMC ahead of time. Taiwan's equipment spending has dropped by 16%, reflecting a slowdown in investments for new capacity.

04/16 14:51

China Import and Export Fair Opens: Chinese Exporters Seek New Markets Amid Pressure from 145% US Tariffs

On April 15, 2025, the 137th Canton Fair opened in Guangzhou, facing the challenge of a 145% tariff imposed by the United States on Chinese products. Chinese exporters stated they are facing a survival crisis, with some companies halting shipments to the U.S., while others are shifting focus to Southeast Asian and European markets. Despite the bustling crowds at the exhibition, the tariff pressure has already altered the strategies of foreign trade companies. Local governments and trade platforms are offering support, and some companies are contemplating relocating production lines to Southeast Asia, but they are encountering new tariff challenges.

04/16 14:20

Singapore establishes an economic resilience task force to address the US-China tariff war; the President dissolves Parliament to initiate May elections; policies at the Hainan Free Trade Port aim to reduce business costs.

In April 2025, Singapore established the "Economic Resilience Taskforce" led by Deputy Prime Minister Lawrence Wong to tackle the effects of the US-China trade war. Meanwhile, Singapore's President Tharman dissolved Parliament on April 15, announcing a general election to be held on May 3. This is the first time Prime Minister Lawrence Wong is leading the People's Action Party in an election. Meanwhile, China's Hainan Free Trade Port is reducing corporate costs through tax incentives to attract businesses by focusing on changes in international trade.

04/16 12:50

US Tech Stocks Hit by Sell-off: NVIDIA, Apple, Tesla shares plummet

In April of 2025, the U.S. tech stock market experienced significant turmoil due to new U.S. restrictions on chip exports to China, high tariffs imposed by the Trump administration, and fears of an economic recession. Investor confidence was shaken, resulting in a massive outflow of funds. The stock prices of tech giants like NVIDIA, Apple, and Tesla plummeted, which dragged down the overall market. U.S. equity funds experienced a $6 billion outflow in a single month as funds shifted towards safe-haven assets such as gold. This event set off a chain reaction in global stock markets, causing simultaneous declines in Asian and European markets, and the three major U.S. indices suffered significant losses.

04/16 11:21

To avoid U.S. tariffs, Apple plans to air freight $2 billion worth of iPhones from India to the U.S. in March 2025, setting a new record for a single month.

In March of 2025, Apple Inc. airlifted nearly $2 billion worth of iPhones from India to the United States in response to the high tariff policy soon to be implemented by President Trump of the United States, setting a new monthly export record. Foxconn and Tata Electronics led this operation, using at least six cargo planes to transport about 600 tons, equivalent to 1.5 million iPhones, from Chennai Airport in India to multiple cities across the United States. This action highlights the flexibility of Apple's supply chain and underscores India's crucial role in its manufacturing network.

04/16 10:54

U.S. AI Chip Export Restrictions Cause Turmoil in Asian Markets: Korean Stocks Plummet, Nikkei Drops, Gold ETFs Hit Record Highs

The U.S. government has imposed export controls on AI chips like Nvidia H20 to China, causing fluctuations in the Asian market. South Korea's KOSPI index fell by 1.21%, with stock prices of Samsung Electronics and SK Hynix dropping; Japanese semiconductor stocks plummeted, and the Nikkei 225 index fell by 347 points. The Japanese yen appreciated by 0.59% against the U.S. dollar, and gold ETFs reached their second-highest price ever due to increased demand for safe-haven assets. South Korea and the U.S. are set to begin trade tariff negotiations, with South Korea considering increasing imports from the U.S. and boosting production within the U.S. to reduce its trade surplus.

04/16 10:54

Trump's economic policy is causing financial pressure for U.S. retirees: Experts recommend using savings cautiously

The Trump administration's reignition of the tariff war and push for tax reform has put financial strain on American retirees. On April 2, 2025, Trump announced new tariffs, leading to a sharp decline in the U.S. stock market, impacting 401(k) and IRA accounts. The ongoing tax reform could potentially reduce social welfare benefits, affecting low- and middle-income groups. Confidence in U.S. assets among global retirement funds is shaken, leading to divestment actions that intensify economic pressure. Experts recommend a steady approach to market fluctuations, avoiding panic-driven actions, and adopting a diversified asset allocation strategy to balance risks and returns.

Singapore Establishes "Economic Resilience Taskforce" to Address US-China Tariff War

On April 16, 2025, Singapore's Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, announced at a press conference that the government has established the "Economic Resilience Taskforce" to assist local businesses and workers in coping with the global trade uncertainties triggered by the recent US tariff increases on China and other countries, which have caused global trade uncertainties. The taskforce comprises five ministers and three representatives from unions and the business community, and it will plan for both short-term impacts and long-term transformation.

Gan Kim Yong noted that although Singapore and the US have experienced stable trade growth since signing a free trade agreement in 2004, Singapore, as a beneficiary of globalization, is deeply concerned about the volatility of the global trade system. He stated, "If tariff adjustments lack rules and are based on 'who raises the highest, who retaliates,' the situation will become unpredictable for businesses."

The taskforce will be divided into three working units: the first group will share information with businesses and understand their actual difficulties; the second group will provide immediate assistance to help businesses and employees face challenges; and the third group will focus on long-term economic transformation and human resource upgrading to help Singapore reposition itself in the new economic landscape.

According to the latest forecast from Singapore's Ministry of Trade and Industry, the economic growth rate for 2025 has been revised down to a range of 0% to 2%, indicating increasing pressure on Singapore's export-oriented economy from the external environment.

Parliament Dissolved, Singapore General Election Set for May 3

Amid rising economic uncertainty, Singapore President Tharman Shanmugaratnam officially dissolved the 14th Parliament on April 15, on the advice of Prime Minister Lawrence Wong, and issued an election writ. According to the election department's announcement, nomination day is set for April 23, and polling day will be on May 3, with a nine-day campaign period starting on April 24.

This election marks the first time Prime Minister Lawrence Wong will lead the People's Action Party (PAP) in an election since taking office in May 2024. The election will select 97 Members of Parliament across 33 constituencies, reflecting the recently adjusted constituency boundaries. According to Singapore law, voting is compulsory, and all eligible citizens aged 21 and above must participate.

Although the People's Action Party has maintained its ruling position in every election since Singapore's independence in 1965, the vote share in this election will be viewed as a public assessment of the new government's performance.

Hainan Free Trade Port Policies Reduce Business Costs, Companies Closely Monitor International Trade Changes

In contrast to the challenges faced by Singapore, China's Hainan Free Trade Port is attracting business attention through policy initiatives. Companies like Hainan Refining and Ausca International Grain and Oil have stated that the tax incentives of the free trade port have significantly reduced operating costs, particularly the "30% value-added processing duty-free" policy, which has effectively controlled the cost of imported raw materials.

Song Pengjun, Deputy Manager of Hainan Refining's Business Operations Department, noted that the company has made early preparations for potential trade fluctuations. Currently, crude oil imports mainly come from the Middle East, West Africa, and Russia, and are not directly affected by US tariffs. Its downstream products are primarily sold domestically, with some exports to Southeast Asia and Europe.

Ausca International Grain and Oil's Deputy General Manager, Cao Youhua, stated that since the company settled in Hainan in 2020, it has saved approximately 300 million RMB in tariff costs due to tax policies. The company mainly processes canola from Canada and closely monitors the development of the US-China trade war, as supply chain countries may be indirectly affected by US policies.

Cao Youhua added that as Hainan's customs operations advance, the company is actively researching how to expand into international markets. He pointed out, "With Hainan's continuously growing population and significant demand in the livestock industry, the domestic market potential is considerable; future product flows to domestic or international markets will be smoother."

The investment promotion activities of Hainan Free Trade Port are also ongoing, with recent contract amounts reaching 233.6 billion RMB, indicating the continued attractiveness of the policies.

References

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