City-state’s exposure to tariff-disrupted supply chains could soon tilt the trade-reliant economy into recession
While the US-China trade war truce achieved at the G20 summit has been widely welcomed by business and markets, trade-reliant regional countries like Singapore are still bracing for economic headwinds.
Economists have warned that Singapore could tip towards recession if the US imposes more tariffs on Chinese imports, a reflection of the wealthy city-state’s high exposure to China-linked supply chains and production networks.
While US President Donald Trump has stepped back, for now, from his threat to slap levies on some US$300 billion worth of additional Chinese goods, US tariffs applied so far have contributed to Singapore’s worst manufacturing downturn in a decade.
The high-tech manufacturing hub’s electronics exports tumbled 31.4% year on year in May as the impact of US tariffs coursed through regional supply chains. Trade data released last month by Enterprise Singapore, a government agency, showed non-oil exports fell 15.9% in May, down from 11.8% in March and 10% in April.
Nile Bowie is a writer and journalist with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
While the US-China trade war truce achieved at the G20 summit has been widely welcomed by business and markets, trade-reliant regional countries like Singapore are still bracing for economic headwinds.
Economists have warned that Singapore could tip towards recession if the US imposes more tariffs on Chinese imports, a reflection of the wealthy city-state’s high exposure to China-linked supply chains and production networks.
While US President Donald Trump has stepped back, for now, from his threat to slap levies on some US$300 billion worth of additional Chinese goods, US tariffs applied so far have contributed to Singapore’s worst manufacturing downturn in a decade.
The high-tech manufacturing hub’s electronics exports tumbled 31.4% year on year in May as the impact of US tariffs coursed through regional supply chains. Trade data released last month by Enterprise Singapore, a government agency, showed non-oil exports fell 15.9% in May, down from 11.8% in March and 10% in April.
Read the full story at Asia Times.
