“Trump’s early strike, just two weeks into his four-year term, is likely to hit investor confidence,” says Mohi-uddin in his Feb 3 note. “The consensus - including ourselves - had expected US tariffs would only threaten the economic outlook in the second half of 2025 after lengthy negotiations first between the US and its main trading partners.”
Bank of Singapore’s chief economist Mansoor Mohi-uddin sees four implications from the sudden return of trade wars this year.
According to Mohi-uddin, US President Donald Trump’s moves to impose additional tariffs on Canadian and Mexican exports as well as Chinese goods, came as a surprise to investors. Trump, on Feb 1, issued an executive order under the US International Emergency Economic Powers Act to impose 25% additional tariffs on all Canadian and Mexican exports and 10% further tariffs on Chinese goods. The tariffs will begin on Feb 4, according to the White House.
