Already, China has announced an additional tariff of 34% on imports from the US, matching the US’s latest reciprocal tariff, along with restrictions on access to rare earth minerals.
The US’s “self-inflicted slowdown” could spiral out of control, says UOB Kay Hian Research analyst Jonathan Koh. In an April 7 note, Koh downgraded the Singapore banking sector to “underweight”, with a “sell” call on DBS Group Holdings and a “hold” call on Oversea-Chinese Banking Corporation (OCBC).
The “nasty” Liberation Day announcement was a negative surprise, says Koh. “The Trump Administration’s across-the-board reciprocal tariff is unprecedented and would trigger retaliation by the EU and China.”
