The global trade landscape is undergoing major shifts. On 5 April 2025, the United States (US) implemented a 10% baseline tariff on most imports, including those from countries such as Singapore. While higher reciprocal tariffs have been deferred for 90 days, the US-China trade relationship has seen significant changes. As of 12 May 2025, the US has agreed to temporarily reduce tariffs on Chinese imports from 145% to 30%. In response, China lowered its tariffs on U.S. goods from 125% to 10% for a 90-day period. 

In this climate of uncertainty, the Singapore Fashion Council (SFC) is here to help you navigate both the immediate and long-term impacts on the global trade landscape. 

Understanding the Broader Impact 

These tariffs are indicative of a deeper restructuring in global trade. The US is also considering additional targeted tariffs on industries such as semiconductors and pharmaceuticals and may revise key trade provisions like the de minimis exemption for low-value shipments. 

Key implications include: 

• Supply Chain Disruptions: Rising operational costs and delays. 

• Weakened Confidence: Dampened consumer and business confidence globally. 

• Challenging Economic Outlook: The IMF projects global growth at 2.8% for 2025, while Singapore’s Ministry of Trade and Industry (MTI) has maintained the GDP growth forecast at 1.0% to 3.0% for 2025. 

Call to Action: Strategic Business Planning 

During this 90-day reprieve (9 April – 8 July 2025), it is an opportunity to conduct strategic reviews and scenario planning. What can businesses do?  

Immediate actions may include: 

• Cost Optimisation: Adopt productivity tools such as automation and AI. 

• Diversification: Reassess supply chains and explore relocating production to regions with more favourable trade terms. 

• Market Expansion: Leverage Singapore’s network of 27 Free Trade Agreements (FTAs) to identify alternative markets. 

• Risk Management: Model various trade scenarios and review contractual obligations that may be affected by tariffs. 

Looking ahead, businesses may consider: 

• Explore new markets and partnerships. 

• Invest in innovation and product differentiation. 

• Strengthen digital capabilities and operational resilience. 

• Identify emerging customer needs from global economic trends  

• Identify emerging procurement needs from shifting global supply chains. 

Available Resources & Government Support 

We’ve compiled key schemes and advisory channels available to you: 

Advisory Support (non-exhaustive) 

• SME Centres – Contact details here. Book an appointment to speak to a business advisor here.  

• Centre for the Future of Trade and Investment (CFOTI) – In-depth FTA/tariff queries: fta@sbf.org.sg 

• EnterpriseSG’s Tariff Finder 

• FAQs on US Tariffs 

• Customs’ website for relevant trade-related information and guides 

Financial Assistance 

• Enterprise Financing Scheme (EFS) – Includes Trade Loans (up to S$10M) and M&A Loans (up to S$50M) 

• Market Readiness Assistance (MRA) – Up to S$100,000 for overseas market promotion, business development, and set-up costs 

• Double Tax Deduction for Internationalisation (DTDi) 

• Companies can already tap on MRA for their third-party consultancy costs covering FTA opportunities assessment, trade compliance, and customs processes. Companies may refer to the website for the full list of pre-approved consultants. 

Workforce Development 

• SkillsFuture Enterprise Credit (SFEC) – $10,000 credit per firm to offset up to 90% of out-of-pocket costs for supported programmes and courses  

• NTUC Company Training Committee (CTC) grant supports companies by covering up to 70% of qualifying costs for employee training that can lead to formal qualifications 

We Want to Hear From You 

To ensure our support aligns with your current needs, we invite you to complete this short industry survey by 30 May 2025. Your input will help shape a clearer picture of industry priorities and guide the next phase of SFC’s support initiatives. 

These questions aim to capture key challenges and opportunities across the sector. Your responses will help shape a report intended for SFC members and relevant trade bodies, guiding future tariff-related efforts. We value your input and appreciate your time. 

The survey will take approximately 15–20 minutes to complete. 

Stay Informed & Reach Out 

We will continue to monitor developments closely and provide updates. For further guidance, please consult: 

• EnterpriseSG USSFTA FAQs  

• CFOTI and SBF tariff queries – fta@sbf.org.sg major shifts