S'pore will seek out like-minded partners committed to open trade: PM Wong on U.S. tariffs

Prime Minister Lawrence Wong responded in Parliament in response to the 10 per cent blanket tariffs the United States imposed on Singapore that came into effect on Apr. 7.

"These are not actions one does to a friend," he said during a ministerial statement in Parliament on Apr. 8.

He added:

"We impose zero tariffs on U.S. imports, and we actually run a trade deficit with the U.S., meaning we buy more from them than they do from us.

If the tariffs were truly reciprocal, and if they were meant to target only those with trade surpluses, then the tariff for Singapore should be zero.

But still, we are being subjected to the 10 per cent tariff."

"We are very disappointed by the U.S. move, especially considering the deep and long-standing friendship between our two countries," he said.

Not reform

PM Wong added that the U.S. is now rejecting the very system of free trade that it created, pointing out some gaps in the White House's implementation of the tariffs:

"According to the administration, the sweeping tariffs are needed to fix America's trade imbalances, but there is nothing inherently wrong about running a trade deficit.

It simply means that American consumers are buying more from the world than the world is buying from America."

He also pointed out that the administration has only given a "partial picture" of the trade imbalance.

"In fact, the US runs a surplus with many of its trading partners in services, exporting software services, education, entertainment, financial, and business services. But this fact has been completely ignored."

Moving forward, PM Wong assured Parliament that Singapore would not be retaliating with tariffs as it would only lead to increased costs for Singaporeans.

He added that Singapore will seek out like-minded partners who "share our commitment to open and free trade".

"The U.S. may have decided to turn protectionist, but the rest of the world does not have to follow the same path."

Top images: MDDI/YouTube, Brendan Smialowski/AFP