Singapore’s Export Woes: Navigating Tariffs and Forecast Adjustments

Data released on Monday shows Singapore's non-oil domestic exports fell by 4.6% in July, contrary to analysts' predictions of a 1.8% annual decline. Pharmaceuticals were a major factor in the decrease, raising concerns over Singapore's trade outlook as exports to key markets such as the U.S. and China declined.

This downturn in exports comes despite the Singaporean economy outperforming expectations in the first half of 2025, prompting the government to adjust its full-year growth forecast to 1.5% to 2.5%. However, concerns linger due to a 10% tariff imposed by the U.S., challenging Singapore's trade relations even under a free-trade agreement.

Prime Minister Lawrence Wong expressed his concerns during the national day rally, indicating uncertainty over potential future tariff hikes on specific sectors like pharmaceuticals and semiconductors. Authorities remain cautious, projecting export growth of 1% to 3% for the year while warning of possible vulnerability in the latter half of 2025.

(With inputs from agencies.)