Singapore Central Bank Warns of U.S. Tariff Shocks

Singapore's central bank, the Monetary Authority of Singapore (MAS), has warned that U.S. tariffs are set to trigger a significant negative income and demand shock to both the local and global economies. The newly imposed tariffs directly impact around 55% of Singapore's exports to the U.S., its second-largest export market, and indirectly affect Singapore through regional supply chains, particularly via China and other Asian trading partners. MAS has described the tariffs as production taxes that squeeze corporate revenues and profits, constraining aggregate demand and posing recession risks for Singapore's trade-dependent economy. As a result, Singapore has downgraded its GDP growth forecast for the year to 0%-2%, a sharp slowdown from the previous year. The central bank also highlighted that further escalation in trade tensions could deepen disruptions, while any easing could help revive sentiment and exports. Cost-of-living concerns and economic uncertainty remain high priorities for policymakers and the public amid this outlook.