US TARIFFS
During the dialogue, Mr Brende asked Mr Wong about the 10 per cent tariffs placed on Singapore by the US, which the former described as a “relatively good deal”.
Singapore has a free-trade agreement with the US, and the US has a surplus with Singapore, Mr Wong noted, inviting the audience to “look at the facts”.
“So on the basis of the FTA and the facts of the trade balance, we should have a zero tariff, not a 10 per cent tariff. But I think America has decided that 10 per cent is their baseline tariff, and they are probably not going to go below 10 per cent,” said the prime minister.
“We have been engaging the officials, but that, I think, is their sort of mindset at this stage,” said Mr Wong.
He also noted that other Southeast Asian countries face higher tariffs. Singapore hopes that when America makes a decision on the “reciprocal tariffs”, this will come down, closer to 10 per cent, he added.
Mr Wong also responded to a question from Mr Brende about how Singapore balances its relationship with both the US and China.
The prime minister stressed that Singapore has “broad and substantial” relations with both countries.
“I know everyone monitors and tracks what we say and what we do very closely, trying to parse every hidden meaning behind every word, behind every action, whether we are moving close to one or the other,” said Mr Wong.
“But that’s not how we look at things, that’s not how we approach it.”
Singapore’s “starting point” is what will advance the country’s national interests, he said.
With good relations with both the US and China, Singapore will continue to do whatever it needs to do to promote and advance Singapore’s interests, he added.
“It’s not about balancing between the two superpowers, but it’s about being consistent and principled in advancing and promoting Singapore’s interests.”
If Singapore continues to do this in a “consistent and principled manner”, its partners – US, China and other countries – will see it as a reliable and trusted partner, said Mr Wong.
