US reciprocal tariffs: What Singapore workers need to know

The US is currently shaking up the global trade landscape.

Under the returning Trump administration, the US has introduced a new series of sweeping and reciprocal tariffs, targeting a wide range of imports, especially from countries America sees as having unfair trade advantages.

These policies, aimed at correcting the “longstanding imbalances of international trade” according to The White House, have been making headlines, raising eyebrows, and causing more than a few headaches for governments and businesses around the world.

While it might be tempting to scroll past another news article about tariffs, this is one issue workers in Singapore should not ignore.

So, what exactly are these tariffs, and how might they affect jobs and businesses in Singapore?

What are tariffs, and what are reciprocal tariffs?

A tariff is a tax on goods imported into a country.

When the US imposes a tariff on foreign-made steel, for example, it becomes more expensive for American companies to buy it.

The objective? To protect US steel producers from being undercut by cheaper imports.

On 2 April 2025, the US announced it would implement a blanket or universal 10 per cent tariff on all foreign imports into the US, except for imports from 11 countries including Russia, Belarus, Cuba and North Korea.

The Trump administration’s approach goes further by introducing reciprocal tariffs. This means that the US will match or mirror the tariffs imposed by other countries.

If a country charges high duties on American goods, the US will impose similar tariffs.

This approach puts pressure on trading partners to reduce trade barriers and open their markets to American products.

But while the logic may be sound, this tit-for-tat approach introduces a new layer of unpredictability to the global trading system.

Why are the US tariffs making the economy unpredictable?

Traditionally, trade policies are derived after extensive negotiations or formal agreements.

But these tariffs were introduced quickly and with little bargaining, save for the ongoing negotiations on reciprocal tariffs which only began after the announcement was made.

The unpredictability makes it harder for businesses to plan, especially those involved in long-term contracts and global supply chains.

To make matters worse, both the universal and reciprocal tariffs were supposed to take immediate effect from 5 April 2025, but the US has since put a 90-day pause on the implementation of the reciprocal tariffs.

Even then, the exact rates of the tariffs are in flux, with the outcomes of continued negotiations seemingly more challenging to predict than the winner of a Jake Paul boxing tournament.

This creates challenges for countries like Singapore, which depend on stable trade flows. Firms may hesitate to invest, expand, or enter certain markets if they fear sudden trade policy changes.

And for workers, this uncertainty can affect job creation, project timelines, and business confidence.

Before the tariffs were announced, the Ministry of Trade and Industry (MTI) had already forecasted a conservative 1–3 per cent GDP growth for 2025. This has since been reduced to 0–2 per cent.

NTUC Assistant Secretary-General Patrick Tay noted that the latest tariffs have added to economic uncertainty, making employers even more cautious about hiring and long-term investments.

“The tariffs have sent a curve ball to many industries and added another layer of uncertainty and unpredictability to the outlook for the rest of 2025,” he said.

The Singapore Economic Resilience Taskforce

Meanwhile, Prime Minister Lawrence Wong announced on 8 April 2025 the formation of the Singapore Economic Resilience Taskforce (SERT) in response to the growing uncertainty triggered by the tariffs and their ripple effects across global trade.

SERT brings together leaders from the Government, the Labour Movement, employer and business federations to monitor international developments and recommend swift, coordinated policy responses.

Chaired by Deputy Prime Minister Gan Kim Yong, SERT’s goal is to safeguard Singapore’s economic competitiveness and protect jobs, especially in vulnerable sectors.

NTUC’s role in SERT would be to pinpoint key challenges faced by businesses and workers, and to help review existing government support measures, and improve them where necessary.

Deputy Prime Minister Gan Kim Yong giving an update on the US Tariffs at the National Press Centre on 16 May 2025. [photo: Ian Tan Hanhonn]

In the taskforce’s latest update on 16 May 2025, Mr Gan assured that the Government has been engaging with companies and institutes of higher learning (IHL) to explore how the Government can assist with creating jobs and internship opportunities.

“We’ve talked to our unions, our workers, to better understand their concerns. Most of their concerns at the top of their minds are really job security.

“Those who have jobs want to know if their jobs are secure and if they will have continued employment opportunities, while those looking for jobs, especially the fresh graduates, are concerned if they would be able to secure a good-paying and good-quality job,” said Mr Gan.

He said that SERT is now working to understand the concerns of businesses, workers, and households and is also considering potential measures that the Government may take as the situation evolves.

“We are also looking at how we can expand our training and upskilling opportunities under SkillsFuture … The employment market remains soft, but we will roll out additional programmes to ensure that our workers will be able to find jobs,” said Mr Gan.

What can workers do about the tariff situation?

While global trade tensions may seem distant from daily life, their impact will be felt in hiring trends and workers’ long-term career prospects.

The good news is that Singapore’s tripartite approach means workers are not left to figure things out alone.

For now, the most important thing workers can do is stay adaptable, which Mr Tay refers to as keeping up to with the 3Rs.

“Our workers need to continue to stay ready, relevant, and resilient – Ready with the new skills, Relevant to the new jobs, and Resilient to the new changes,” he said.

While Singapore cannot control global trade winds, it can adjust its sails. And with the right mindset and support, so can every worker.

Amidst global economic uncertainties, let us walk alongside you every step of the way. Become an NTUC member today.