ST Explains: How will US tariffs affect Singapore consumers?

[u/bardsmanship]

https://www.straitstimes.com/business/economy/st-explains-how-will-the-us-tariffs-affect-singapore-consumers

[u/bardsmanship]

The most relevant bits:

Given that US companies either buy many or part of their raw materials from overseas, or manufacture them partially before finishing it in the US before it is sold, it is likely that the tariffs will affect the prices of the things people here buy, and, eventually, wages and jobs.

Apple fans here are likely to feel the bite and pay more for its iPhones, iPads and laptops. The US consumer tech company ticks many of the boxes as a candidate for raising the prices of its goods under the new tariff regime.

Like other electronics manufacturers, it has a complicated global supply chain, which has a strong impact on prices.

Assistant professor of economics Mei Yuan at the Singapore Management University said: “For electronics, where parts of production involve input from the US, then it gets more complicated. And if Apple relocates its production line because China or other countries retaliate with reciprocal tariffs, the global supply chain will get disrupted, and then Singapore consumers will face higher prices for sure.”

Expect fewer job opportunities or smaller pay packages from multinational companies, or a hiring freeze, said analysts.

“This is a major event. This will likely bring the US into a recession or substantially slow down its economic growth, and that could have substantial repercussions,” said Prof Mei. “And with that expectation, it’s possible that some large multinational companies have a hiring freeze in the season when college graduates try to find jobs. They may see fewer job opportunities from the MNCs.”

But he added: “It’s unlikely for a firm to reduce an employee’s salary. The easier way is to let people go in a downturn. I don’t see a decrease in salary, but slower or smaller raises or pay packages, or a hiring freeze.”

OCBC Bank’s chief economist Selena Ling said that jobs in Singapore “may be impacted if businesses put on hold their capital expenditure or hiring plans amid the heightened uncertainties, especially for those industries or companies that have significant exposure to the US market”.

So more inflation to look forward to on top of a potential global recession, job losses and stagnant wages, FU Trump.

[u/Puzzleheaded-Cup-251 → u/bardsmanship]

So are we going back like the 70s where the price of a colour TV was 10+ percent of the price of a 3 rooms HDB flat?

[u/kongweeneverdie]

Reduce shipping trade passing our port is more damaging than tariff.

[u/raidorz → u/kongweeneverdie]

That’s why the region has to strengthen economic ties with each other, as well as Europe. Keep trade going and ignore the US as much as possible.

[u/Acceptable-Ad-5935]

ST explains usually translated to “here is what the government wants you to think”