Singapore's Prime Minister and Finance Minister, Lawrence Wong, stated on the 4th that the United States is abandoning the trade system it created. Its new practice of imposing 'reciprocal tariffs' on other countries completely contradicts the framework of the World Trade Organization. If other countries adopt the same approach as the United States and trade only on their preferred terms, all countries will face trouble, especially small nations like Singapore.
In a video speech through social media that evening, he warned that although the current direct impact on Singapore is limited, the consequences of the U.S.'s 'reciprocal tariffs' are broader and more far-reaching. Singapore will face the risk of being excluded, marginalized, and left behind.
He said: “We can also expect a strong global reaction to U.S. tariffs. Singapore has decided not to impose retaliatory tariffs, but other countries may not take the same restrained approach. The possibility of a full-scale global trade war is increasing.”
He pointed out that the latest U.S. announcement marks a major change in global order. The era of rule-based globalization and free trade has ended, and we are entering a more arbitrary, protectionist, and dangerous new stage.
He emphasized that the impact caused by raising tariffs, along with uncertainty about the next steps countries might take, will have a heavy toll on the global economy, affecting international trade and investments, and slowing down global economic growth. Singapore, which relies heavily on trade, will suffer a heavier blow compared to other countries.
He stated that a similar situation last occurred in the 1930s, when trade wars escalated into armed conflict, eventually leading to the Second World War. No one can predict the direction of the current situation in the coming months or years, but we must remain clear-eyed about the growing dangers in the world. This includes the weakening of global institutions, the gradual disappearance of international norms, and more countries acting based on narrow self-interests and using force or pressure to achieve their objectives.
He said: “This is the harsh reality of today's world. We will remain vigilant, enhance our capabilities, and strengthen our network of partnerships with like-minded countries. Compared to other countries, Singapore's reserves, cohesion, and determination allow us to be more prepared.”
However, Wong also stated that Singapore must prepare for greater impacts in the future, as the global calm and stability people were once familiar with will not return quickly, nor can the rules protecting small nations be expected to remain effective.
Wong concluded the video by noting that he delivered this speech hoping that Singaporeans will be mentally prepared and not caught off guard.
He reminded: “We cannot be complacent; the risks are real and the stakes are high. The road ahead is tougher, but as long as we stay united, Singapore can continue to stand firm in a turbulent world.”