The tariffs, introduced by President Donald Trump, have disrupted Singapore's trade-dependent economy, prompting the government to revise its 2025 GDP growth forecast downward from 1–3% to 0–2%. The Monetary Authority of Singapore has responded by easing monetary policy for the second time this year, adjusting its exchange rate-based approach to mitigate the economic impact.
In response to the escalating trade tensions, Singapore has formed an economic resilience taskforce led by Deputy Prime Minister and Trade Minister Gan Kim Yong. This taskforce, comprising government officials and industry representatives, aims to address the immediate challenges posed by the tariffs and to develop long-term strategies to bolster the nation's economic resilience.
Singapore is also actively seeking to diversify its trade partnerships, focusing on strengthening ties with countries that share its commitment to open and free trade. Efforts are underway to enhance economic cooperation with regional partners such as Taiwan, Indonesia, and South Korea, as well as to explore new markets in the European Union and India.
Despite the challenges, Singapore's exports have shown some resilience, with a 5.4% year-on-year increase in March 2025, driven by growth in both electronic and non-electronic shipments. However, this growth fell short of expectations, reflecting the broader uncertainties in the global trade environment.