With Singapore’s open economy, the country could be negatively affected by the heightened challenges in global trade although this may be partly mitigated by the city-state’s strong trade relations with the US.
CGS International analysts Lock Mun Yee and Lim Siew Khee see that a win by former US president Donald Trump this November may mean a “near-term boost” but a “slower long-term growth outlook”.
Should Trump win his second term in the White House, this could mean continued tax cuts and deregulation, as well as increased investments in infrastructure. All of these may lead to creating jobs, the boosting of private consumption and stimulating US economic growth. These factors, in turn, may lead to further imports, escalation of trade and tech wars, as well as rising trade tariffs such as the discussed proposals to impose a 60% trade tariff on China and a 10% global tariff. The tariffs, in the longer term, could reduce global trade and affect global growth amid elevated inflation.
