[SINGAPORE] Nearly half of companies in Singapore (45 per cent) plan to pass on the increased costs from the new US tariffs to their customers, a flash survey by the American Chamber of Commerce (AmCham) in Singapore has found.
Other firms intend to respond by diversifying their supply chains to reduce their reliance on high-tariff markets, or seizing opportunities to gain market share from competitors who are slower to adapt, AmCham Singapore said on Wednesday (Apr 2).
More than two-thirds of the 36 respondents polled flagged potential reciprocal tariffs on countries taxing US imports as the most significant concern for their business – over existing trade measures.
Nearly seven in 10 (69 per cent) said they expect the new tariffs to have a significant or moderate negative impact on their operations.
The survey findings came ahead of an anticipated announcement by the White House on Wednesday afternoon in Washington, detailing sweeping reciprocal tariffs on America’s trading partners.
While no specifics have been disclosed, US President Donald Trump has referred to the move as “Liberation Day”.
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Markets in the Asia-Pacific were mixed on Wednesday, with Singapore’s benchmark Straits Times Index down 0.4 per cent or 14.64 points at 3,954.21.
Around 20 per cent of respondents said they believe that the measures would have no effect on their businesses.
Frank Debets, Asia-Pacific customs and trade leader at PwC Singapore, disagreed. He said it would be “surprising” if companies reporting no impact are fully insulated from the knock-on effects.
For instance, he said, their suppliers and customers may be affected, hurting their ability to buy or sell products or services, or they may be caught by retaliatory measures elsewhere.
“It would be wise for anyone who believes the tariffs do not impact them to perform the necessary due diligence to ensure that their belief is well-founded,” he added.
The flash poll was jointly conducted by AmCham Singapore, BowerGroupAsia Singapore, and PwC Singapore. The responses were gathered between Mar 3 and 10.
