Singapore Prime Minister Lawrence Wong issued a grave warning on the global repercussions of U.S. President Donald Trump's tariff escalation. In a video address, Wong expressed concern that trade wars could escalate into full-blown armed conflicts if unchecked. He confirmed that Singapore has been directly impacted by a 10% tariff imposed by Washington on its exports. The move, part of Trump’s wider “America First” economic retaliation strategy, is drawing concern from trade-reliant nations across Asia. Wong urged global leaders to act fast to protect multilateral trade and peace.
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NewsTranscript
00:00recent Liberation Day announcement by the US leaves no room for doubt. Singapore and many
00:07others have long called for reform. The US is doing now is not reform. The US has placed
00:16Singapore in the lowest base tier with a tariff of 10%. We can also expect a strong global response
00:24to America's tariffs. International trade and investments will suffer and global growth will
00:31slow. My fellow Singaporeans, I've said before that the world is changing in ways that will
00:39disadvantage small open economies like Singapore. Some had previously questioned this assessment
00:47but the recent Liberation Day announcement by the US leaves no room for doubt.
00:56It marks a seismic change in the global order. The era of rules-based globalisation and free trade
01:04is over. We are entering a new phase, one that is more arbitrary, protectionist
01:14and dangerous. For decades, the US was the bedrock for the free market economies of the world.
01:21It championed free trade and led efforts to build a multilateral trading system,
01:28anchored by clear rules and norms where countries could achieve win-win benefits through trade.
01:36This WTO system brought unprecedented stability and prosperity to the world
01:42and to the US itself. To be clear, the system is not perfect. Singapore and many
01:48others have long called for reform to update the rules and to make the system better.
01:56But what the US is doing now is not reform. It is abandoning the entire system it had created.
02:05Its new approach of reciprocal tariffs, country by country, is a complete rejection of the WTO
02:13framework. The US has placed Singapore in the lowest base tier, with a tariff of 10%.
02:20So the direct impact on us may be limited, for now. But there are wider and more profound
02:27consequences. If other countries adopt the same approach as the US, abandoning the WTO
02:34and trading only on their own preferred terms, country by country, it will spell trouble for
02:41all nations, especially small ones like Singapore. We risk being squeezed out,
02:49marginalized and left behind. We can also expect a strong global response to America's tariffs.
02:58Singapore has decided not to impose retaliatory tariffs. But other countries may not exercise the
03:05same restraint. The likelihood of a full-blown global trade war is growing. The impact of the
03:14higher tariffs plus the uncertainty of what other countries may do next will weigh heavily on the
03:22global economy. International trade and investments will suffer and global growth will slow.
03:30Singapore will take a bigger hit than others because of our heavy reliance on trade.
03:37The last time the world experienced something like this was in the 1930s. Trade wars escalated
03:46into armed conflict and eventually the Second World War. No one can say how the current situation
03:53will unfold in the coming months or years. But we must be clear-eyed about the dangers that are
04:02building up in the world. Global institutions are getting weaker. International norms are eroding.
04:11More and more countries will act based on narrow self-interest and use force or pressure to get
04:19their way. This is the harsh reality of our world today. We will stay vigilant. We will build up our
04:28capabilities. We will strengthen our network of partnerships with like-minded countries.
04:35We are more ready than many other countries with our reserves, our cohesion and our resolve.
04:44But we must brace ourselves for more shocks to come. The global calm and stability we once knew
04:52will not return anytime soon. We cannot expect that the rules which protected small states
05:02will still hold. I am sharing this with you so that we can all be mentally prepared,
05:08so that we will not be caught off guard. Let us not be lulled into complacency. The risks are real
05:17and the stakes are high. The road ahead will be harder. But if we stay resolute and united,
05:25Singapore will continue to hold its own in this troubled world.