Singapore's exports drop by 11.3% in August, primarily due to increased US tariffs and diminished demand from China, resulting in a substantial decrease in shipments.
Singapore's Exports Decline Amidst Global Trade Uncertainty
Singapore, the second-largest economy in South-east Asia, has experienced a significant drop in exports in August 2025. The decline, attributed to a range of factors, including disruption to world trade and export supply chains caused by steep new US tariff measures, has affected various sectors.
The hardest hit was the specialised machinery sector, with shipments to both the US and China plummeting by 71.3% and 42% respectively. Integrated circuits exports to China also shrank by 36.8%, while exports of food preparations to the US fell by an staggering 97.1%.
Electronic and non-electronic shipments to the US experienced significant falls, with exports to the United States decreasing by nearly 29%. Exports to China, too, showed a decline, though specific figures were not provided. The weaker retail sales in the third quarter of 2025 in China are reflected in the country importing less from Singapore, with exports to China shrinking by 21.5% in August, steeper than the 12.3% decrease in July.
The drop in exports is also attributed to regulatory actions by the U.S. Department of Commerce and export control measures implemented by China's Ministry of Commerce. Exports of non-monetary gold from Singapore to China plunged by 96.1%, and disk media products exports to the US tanked by 60%.
Despite Singapore's relatively low exposure to tariffs from trade tensions between the US and China, the global slowdown has taken its toll. Singapore last month raised its 2025 economic growth forecast to 1.5 - 2.5%, but warned the outlook for the rest of the year remains clouded by global uncertainty, in part due to US tariffs.
The Singaporean government is working to mitigate the impact of these trade disruptions. The Monetary Authority of Singapore (MAS) has previously stated that it will adjust its monetary policy stance to ensure price stability and support growth.
As the situation continues to evolve, Singapore, like many other economies, is navigating the challenges posed by global trade uncertainties. The government remains committed to fostering a resilient and innovative economy that can weather these storms and continue to thrive in the long term.
Read also:
- International powers, including France, Germany, and the UK, advocate for the reinstatement of sanctions against Iran.
- Republicans advocate Trump's domestic policy plans in Iowa, though some business owners remain skeptic
- Procedure for Granting the Contract Has Been Instigated by the Commission
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic Make Headlines in Connected Car Sector News
