[By Guancha Observer Network, Chen Sijia] US President Trump's insistence on imposing so-called "reciprocal tariffs" has drawn widespread opposition from the international community. According to a report by the Financial Times on April 7, Singaporean Foreign Minister Vivian Balakrishnan stated that Trump's tariff policy may trigger a "global trade war," which is particularly disadvantageous for small countries like Singapore. He pointed out that tariffs could prompt more countries to turn to China, further enhancing China's position in global trade.

Vivian Balakrishnan noted that Trump set a 10% tariff on goods imported from Singapore, which is relatively low in the Asia-Pacific region. However, as an international financial and commercial hub, Singapore is vulnerable. As a bridge connecting the West with China, Singapore's total foreign trade exceeds three times its gross domestic product (GDP), making its economy particularly sensitive to disturbances in global trade.

"Our greatest concern is that this series of statements has fundamentally shaken the foundation of the world trade system," said Vivian Balakrishnan to the Financial Times. "If this system collapses into countless bilateral relationships, it will be very disadvantageous for small countries, especially for us, such small countries that are particularly sensitive to global trade. We are very afraid of a global trade war."

Analysts generally predict that as US protectionism strengthens, more countries will seek to enhance their trade ties with China. When asked whether China's position in global trade will further increase, Vivian Balakrishnan responded, "On the surface, the answer might be yes."

However, he also added that against the backdrop of a stagnant global economy, Trump's tariff policies could cause serious impacts on the economies of various countries around the world. "For China and all its partners, including us, this global trade war is not timely," he said.

Singaporean Foreign Minister Vivian Balakrishnan Video screenshot

On April 2, US President Trump signed an executive order at the White House regarding the so-called "reciprocal tariff," announcing a 10% "minimum benchmark tariff" for all trading partners. Additionally, higher tariffs will be imposed on dozens of other countries and regions, including China, based on the 10% level. Among them, the "reciprocal tariff" rate imposed by the US on China is 34%.

Singapore was subjected to a 10% "minimum benchmark tariff." In 2024, Singapore had approximately $30 billion in trade deficit with the US. Singapore Prime Minister and Finance Minister Heng Swee Keat criticized Trump's tariff policy severely on April 4. He believed that the "reciprocal tariff" marks the end of the era of globalization and free trade, and the arrival of an "arbitrary, protectionist, and dangerous" era.

Heng Swee Keat warned that Trump's measures completely contradict the framework of the World Trade Organization (WTO), increasing the possibility of a "global trade war." There is a risk that we may be marginalized, excluded, and fall behind. He pointed out that Singapore highly depends on trade and may suffer greater impacts in the "tariff war." Therefore, Singapore must prepare for the impact.

The Financial Times noted that Singapore has always been striving to maintain relations with both China and the US. China is Singapore's largest trading partner, with a total commodity trade volume of $126 billion last year. The US is Singapore's third-largest trading partner, with a trade volume of $98 billion last year.

Many Southeast Asian countries surrounding Singapore will face Trump's high tariffs, such as Cambodia at 49%, Vietnam at 46%, Thailand at 36%, Indonesia at 32%, and Malaysia at 24%. This will impact manufacturing in the Asia-Pacific region.

Malaysian Prime Minister Anwar Ibrahim stated on April 7 that Malaysia will strive to play the role of ASEAN Chairman, coordinate and strengthen communication and connections among ASEAN countries, and promote ASEAN as a whole to respond to the US tariff policy. Anwar emphasized that with increasing global economic and political uncertainties, ASEAN must not take the latest US tariff policy lightly.

This article is an exclusive contribution from the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7490787312985555519/

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