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Following the “Liberation Day” initiative, in which the United States introduced a baseline 10% tariff on all imports and higher tariffs for 57 countries, there’s a growing concern on how businesses—big and small—can respond decisively to these trade shifts.
While Singapore faces a lower tariff than its regional counterparts, for an open economy it still presents significant challenges, deeply affecting the local companies with supply chains linked to the U.S. and China.
Centre for the Future of Trade and Investment (CFOTI) has partnered with key organizations—DHL Express, DBS Bank, Pacific International Lines (PTE) Ltd, PwC Singapore, and Rajah & Tann Asia—to create Navigating U.S. Tariffs Playbook, aiming to inform Singaporean businesses on key considerations to remain competitive in the global market amid the dynamic trade.
Overview of Navigating U.S. Tariffs Playbook
The playbook outlines a practical, time-phased strategy under three pillars: Make Sense, Take Action, and Plan Ahead. Each pillar also highlights the desired outcomes for businesses.
Make Sense (0-3 Months) | >Take Action (4-12 Months) | >Plan Ahead (12+ Months) |
| Focus on immediate risk assessment and stabilization. | Implement structural adjustments and diversification. | Build long-term resilience and strategic transformation. |
Poll highlights: Sentiments on U.S. Tariff Changes
The poll, which garnered 294 responses from enterprises ranging from Small and Medium Enterprises (SMEs) to Multinational Corporations (MNCs) between April 11 and April 23, 2025, reveals a prevailing sentiment of negativity and a proactive stance towards adaptation among local firms.
Widespread Negative Impact and Exposure to the U.S. Market
- 81% Singapore businesses anticipate a negative impact from the recent U.S. tariff changes within the next six months.
- A significant proportion of businesses (52%) have exposure to the U.S. market. MNCs exhibit greater exposure, with 62% having ties to the U.S. market compared to 49% of SMEs.
- Among businesses with U.S. exposure, 1 in 5 (18%) are highly dependent, deriving over 50% of their revenue from the U.S. market in 2024.
Businesses Prioritize Price Adjustments and Strategic Adaptations
- One in two businesses (52%) plan to pivot their business strategies and adjust pricing over the next 12 months.
- Other key strategies include exploring alternative sourcing (39%) and pursuing market diversification (37%), with Southeast Asia as the most preferred market.
Our key takeaways
Diversification is Imperative | Given the significant exposure to the U.S. market and the risks associated with it, Singapore companies should consider market diversification. Southeast Asia stands out as the most preferred region for diversification (79%), followed by Europe (39%) and the Middle East (38%). |
Enhance Trade Competencies and Seek Support | Understanding global trade regulations and compliance requirements is now considered critical by businesses. Businesses should actively seek government support in the form of tax reliefs, financial assistance, regulatory flexibility, and workforce support. Furthermore, staying informed with regular updates on tariffs and trade agreements is crucial for navigating this uncertain landscape. |
No one knows Asia like we do. Partner with us for your Southeast Asia diversification.
With our over five decades of international logistics experience, DHL Express remains unmatched in expertise and deep local knowledge.
We look forward to helping you expand your business across Asia’s dynamic markets amid the ever-evolving global trade landscape.
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