Singapore and the United States are negotiating concessions on the export of pharmaceuticals and AI chips, facing challenges due to Trump's tariffs. The economic growth forecast has been downgraded to between 0% and 2%, with the general election approaching.

Taiwan • Business • 04/28 19:03
Singapore and the United States are negotiating concessions on the export of pharmaceuticals and AI chips, facing challenges due to Trump's tariffs. The economic growth forecast has been downgraded to between 0% and 2%, with the general election approaching.

Singapore is negotiating with the United States to obtain concessions for pharmaceutical exports and access to the AI chip market, in response to the challenge of Trump's 10% tariff policy. Singapore's economic growth forecast has been revised down to between 0% and 2%, with a rising risk of unemployment. With the parliamentary election approaching on May 3, the cost of living becomes a major concern for voters.

Key Updates

04/29 07:04

In response to shifts in trade dynamics, the bicycle contract manufacturing factory plans to build a new factory in Vietnam by 2025 to supply Europe.

In response to changes in global trade policies and tariff pressures, the bicycle manufacturing contractor Mingxi Co., Ltd. (6804) is adjusting its production sites and shipping strategies. The company plans to establish a factory in Vietnam by mid-2025 and begin mass production by the end of 2026 to supply the European market. This move aims to reduce dependence on high-tariff markets, increase operational flexibility, and restructure the global supply chain layout.

04/29 03:06

The supply chain is cooling down, from warehouses to ports, as the rush from the US-China tariff war subsides.

The surge in orders due to the U.S. imposing high tariffs on China has cooled off, and the trend of electronics manufacturers shipping early has vanished, resulting in decreased demand for sea and air transport between China and the U.S. Shipments of products such as laptops and iPhones have slowed down, and container orders at the Port of Los Angeles have plummeted. Chinese export companies are pivoting to emerging markets and adjusting their supply chain strategies. U.S. ports and the retail sector are feeling the impact, with import volumes projected to drop by 20%.

04/29 03:06

New US Tariff Policy Sparks Price Hikes in E-commerce and Consumer Goods: Prices of Amazon and Shein Products Soar, Major Companies like Procter & Gamble Announce Price Changes

Since the implementation of the new United States tariff policy on April 9, 2025, prices on platforms like Amazon and Shein have surged. Amazon has seen an average price increase of 29% for nearly a thousand products, while Shein's beauty and health products have seen a 51% price hike. UPPAbaby strollers have experienced a 33% price increase. Procter & Gamble, Unilever, and Nestlé have announced plans to further raise their product prices in the coming months. This wave of price hikes, driven by the tariff policy, is impacting the daily lives of American consumers.

04/28 23:01

Chinese battery manufacturers have been severely impacted by high tariffs, while South Korean companies are speeding up their entry into the U.S. and European markets.

Global demand for energy storage is increasing, and Chinese battery manufacturers like CATL are facing up to 173.4% tariff pressures in the US market, hindering their market layout. South Korean companies like LG Energy Solution and SK On are expanding with policy support, filling the market void. Although Chinese companies have a cost advantage, they need to pivot towards Europe and emerging markets. US and European policies are reshaping the supply chain, prompting companies to accelerate the localization of production and technological upgrades.

04/28 21:31

Economist from Apollo: Trump's High Tariff Policy Predicted to Cause U.S. Economic Recession by Summer 2025

In the spring of 2025, the U.S. economy faced a supply chain crisis due to the Trump administration in the United States increasing tariffs on Chinese imports to 145%. Container volumes at ports plummeted, retailers such as Walmart warned of product shortages, the demand for trucking services collapsed, and manufacturers such as Mack Trucks laid off workers. Torsten Slok, chief economist at Apollo Global Management, predicted that these factors would lead to a U.S. economic recession in the summer of 2025, showing signs of stagflation.

04/28 19:03

Singapore and the United States are negotiating concessions on the export of pharmaceuticals and AI chips, facing challenges due to Trump's tariffs. The economic growth forecast has been downgraded to between 0% and 2%, with the general election approaching.

Singapore is negotiating with the United States to obtain concessions for pharmaceutical exports and access to the AI chip market, in response to the challenge of Trump's 10% tariff policy. Singapore's economic growth forecast has been revised down to between 0% and 2%, with a rising risk of unemployment. With the parliamentary election approaching on May 3, the cost of living becomes a major concern for voters.

04/28 14:01

China refuses to accept Boeing passenger planes, Riyadh Air expresses willingness to purchase, Trump criticizes Beijing's trade policies

Chinese airlines have refused to accept Boeing planes due to US-China trade tensions, leading Boeing to return some planes to the US and seek resale. Tony Douglas, the CEO of Riyadh Air in Saudi Arabia, stated that if China cancels its order, the company is willing to purchase all the planes that were rejected. This move has drawn criticism from former US President Trump, who directed his criticism towards Beijing, urging Boeing to hold China accountable for breaching the contract and accusing China of not fulfilling its purchase commitments.

04/28 13:30

On April 29, PayPal will release its financial report, and investors are focusing on the impact of tariffs imposed by Trump on consumer spending.

PayPal will announce its first-quarter 2025 financial report on April 29. The market is focused on its performance under the Trump administration's new tariff policies, especially in international business and consumer transactions. Analysts have mixed views on its prospects, with some downgrading ratings due to the impact of tariffs. The Trump tariff policy's effect on consumer spending has raised market concerns, particularly for low-income groups. The surge in Buy Now, Pay Later (BNPL) usage may temporarily boost PayPal's transaction volume, but it also raises credit risk. Investor sentiment is volatile, with clear signs of market funds flowing out of the United States. PayPal's market value is approximately $63.3 billion, and the CEO is driving innovation and cost control strategies.

04/28 11:07

Indonesia and the United States initiate tariff negotiations, South Korea-US trade boosts South Korean stocks, South Korea's credit card delinquency rate hits a ten-year high

In April 2025, Indonesia and the United States initiated bilateral tariff negotiations, focusing on energy, agricultural products, and key minerals. Korea-U.S. trade talks boosted the South Korean stock market by 0.10%, but South Korea's credit card delinquency rate hit a ten-year high. Facing the new U.S. tariff policy, many Asian countries are accelerating negotiations, aiming to reach an agreement within 90 days.

04/28 01:00

Yiwu International Trade City Remains Vibrant Amidst the US-China Trade War: Merchants from the Middle East, South America, and India Fuel Competition in the Toy Wholesale Market

Despite the escalation of the US-China trade war, Yiwu International Trade City in Zhejiang will face pressure from high US tariffs in April 2025, hindering exports to the US market. However, merchants from the Middle East, South America, India, and other regions continue to pour in, particularly in the toy wholesale market, where prices are 30% to 50% below typical market rates. Yiwu merchants have successfully mitigated risks through market diversification and supply chain integration, maintaining their status as the world's hub for small commodities.

Singapore and the US Negotiating Concessions on Pharmaceuticals and Chip Exports

Singapore's Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, recently stated that Singapore is in negotiations with the United States to secure tariff concessions on pharmaceutical exports to the US, while ensuring that Singaporean companies can continue to access the US high-end AI chip market. According to a transcript released by Singapore's Ministry of Trade and Industry, Gan Kim Yong explained Singapore's export control system to US Secretary of Commerce Gina Raimondo during a call on April 25, reiterating that Singapore will not allow companies to use local operations to circumvent US export control regulations.

Gan Kim Yong pointed out that pharmaceuticals account for over 10% of Singapore's total exports to the US, making concessions in this area crucial for Singapore. He emphasized, "These two areas are very important, and we are very pleased to see progress in bilateral discussions." Raimondo stated that concerns about chip export controls are not targeted at Singapore alone but are part of an overall policy consideration, and she hopes to explore "creative ways" to enhance bilateral trade cooperation.

Challenges of Trump's Tariff Policy for Singapore

Despite the free trade agreement (FTA) between Singapore and the US, the "reciprocal tariffs" policy promoted by the Trump administration still imposes a baseline tariff of 10% on Singaporean export goods. Singapore's Prime Minister, Lawrence Wong, has publicly pointed out that such unilateralism and protectionism measures symbolize the end of the era of globalized free trade, posing a risk of marginalization for small open economies like Singapore.

Singapore has chosen not to adopt retaliatory tariff measures but instead to mitigate risks by expanding multilateral free trade networks and deepening regional cooperation. Lawrence Wong emphasized that Singapore will continue to strengthen its connections with regional economic and trade frameworks such as ASEAN, CPTPP, and RCEP, and reduce reliance on any single major country through the 27 free trade agreements it has signed.

The Monetary Authority of Singapore (MAS) noted in its latest macroeconomic assessment that US tariffs will have a multiplier effect on Singapore's economy, directly affecting export revenue and indirectly suppressing overall demand. MAS estimates that in 2024, the US will account for 11% of Singapore's exports, with about 55% of export goods subject to the 10% baseline tariff, covering products such as steel, aluminum, and auto parts. Semiconductor, consumer electronics, and pharmaceuticals, which currently enjoy tariff exemptions, face the risk of potential new restrictions in the future.

Economic Growth Forecast Downgraded to 0% to 2%

Amid global trade tensions and US tariff policies, signs of a slowdown have emerged in Singapore's economy. In the first quarter of 2024, Singapore's seasonally adjusted GDP contracted by 0.8% compared to the previous quarter, reversing the 0.5% growth in the fourth quarter of 2024. Consequently, the Singapore government has downgraded its full-year economic growth forecast to 0% to 2%.

The Monetary Authority of Singapore pointed out that in addition to export restrictions, corporate revenue and profits will also be compressed, further affecting domestic demand. Although a full-scale recession has not yet occurred, economists generally believe that the risk of a technical recession (two consecutive quarters of negative growth) in Singapore is rising. In the job market, the unemployment rate slightly increased in the first quarter of 2025, and overall employment growth slowed compared to the previous quarter.

MAS warned that if the global trade war escalates further, it could trigger a global manufacturing recession and financial market turmoil, posing a greater threat to small economies like Singapore that are highly dependent on foreign trade.

Upcoming General Election, Cost of Living in Focus

Against the backdrop of a deteriorating economic outlook, Singapore will hold its general election on May 3. Major political parties, including the People's Action Party (PAP), Singapore Democratic Party (SDP), and Workers' Party (WP), have launched intensive campaigning activities since April 29, holding election rallies in different constituencies.

In this election, the rising cost of living has become one of the top concerns for voters. Singapore's Prime Minister, Lawrence Wong, in his pre-election speech, urged voters to support the government, emphasizing that in times of increasing global uncertainty, the country needs stability and continuity. Various parties have also proposed different positions on economic policy, social welfare, and housing issues to win voter support.

As election day approaches, Singaporean society is closely watching how the future government will address external economic challenges and maintain domestic economic resilience and social stability.

References

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