Passers-by hold their mobile phones as people take a selfie photo using a smartphone with Singapore’s central business district skyline, May 10, 2019. Photo by Reuters
Nearly half, or 45%, of companies polled in Singapore plan to pass on increased costs from new U.S. tariffs to their customers, a new survey has found.
Other firms intend to respond by diversifying their supply chains to reduce their reliance on high-tariff markets or seizing opportunities to gain market share from competitors that are slower to adapt, American Chamber of Commerce (AmCham) Singapore said on April 2.
The flash survey found that more than two-thirds of the 36 respondents polled flagged potential reciprocal tariffs on countries that tax U.S. imports as the biggest concern for their business – compared to existing trade measures.
Nearly seven in 10 (69%) said they expect the new tariffs to have a significant or moderately negative impact on their operations.
The survey findings came ahead of the announcement by the White House on April 2, detailing sweeping reciprocal tariffs on the U.S.’s trading partners.
Around 20% of respondents said they believe that the measures will have no effect on their business.
Frank Debets, Asia-Pacific customs and trade leader at PwC Singapore, disagreed. He said it will be “surprising” if companies reporting no impact are fully insulated from the knock-on effects.
For instance, their suppliers and customers may be affected, hurting their ability to buy or sell products or services, or they may be caught by retaliatory measures elsewhere, he added.
The poll was jointly conducted by AmCham Singapore, BowerGroupAsia Singapore and PwC Singapore.
