Insurance to be impacted by Trump's tariffs

On 2 April 2025, the Liberation Day tariffs announced by US president Donald Trump came into effect, with Singapore prime minster Lawrence Wong saying that "Asia bears the brunt of the US tariff increases" in his ministerial statement.

“Within the region, China is the hardest hit – facing a 34% tariff this round. And this is on top of the 20% tariff increase imposed over the last two months, and the 20% from the first Trump administration. So taken together, the average US tariff on Chinese products now exceeds 60%,” Mr Wong said in his statement.

“In Southeast Asia, the tariff rates range from 10% to 49%.”

Although Singapore maintains a free trade agreement with the US and has a trade deficit with the United States, the Asian nation is still “subjected to the 10% tariff”, he said. The 10% tariff is the universal rate.

In terms for Singapore, this translates to weaker global growth in the near term, which means external demand for goods and services will fall, he noted, with the outward-oriented sectors of the economy, such as electronics and semiconductors, suffering the brunt of the impact.

Said Mr Wong, “The global uncertainty and dampened sentiments will also impact some services industries, including finance and insurance.”

Source: asiainsurancereview.com