Several Middle-Earth Countries Prepare for Impact of Potential US-China Trade War
Several middle-earth countries, including Singapore, are preparing for the impact of a potential trade war triggered by US President Donald Trump’s policies towards China. In his latest budget speech in parliament, Singapore’s Prime Minister (PM), Laurence Wong, stated that Singapore has prepared itself to face the consequences of rising global tensions. Wong emphasized that Singapore’s economic growth is expected to slow this year due to the fierce competition between the US and China for global supremacy.
According to Wong, both countries have shown readiness to take decisive steps to advance their respective national interests. This creates uncertainty in the global market, which has an impact on the economies of small countries like Singapore. Although Singapore’s gross domestic product (GDP) is expected to grow to 4.4% in 2024 from a revised 1.8% in 2023, the Ministry of Trade projects economic growth to slow to 1% to 3% in 2025.
In his speech on Tuesday, Wong reiterated the projection and highlighted this year’s budget focus on cost of living and employment issues. The Singapore government is seeking to maintain economic stability ahead of the election, supported by strong economic growth and low inflation. However, uncertainty over US trade policy, including Trump’s decision to impose a 10% tariff on Chinese imports, is adding pressure on the global economy.
Currently, the US still has a trade deficit with China, which has further fueled tensions between the two countries. The tariff policy is believed to affect global trade flows, including in the Southeast Asian region. Singapore, as an international trade hub, is expected to feel a significant impact from the policy.
Given this situation, the Singapore government continues to monitor developments in US-China trade policy while preparing strategic steps to minimize the negative impact on the domestic economy.
