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US flip-flop on punitive tariffs makes guidance challenging for banks

Goola Warden and Jovi Ho
Goola Warden and Jovi Ho • 10 min read
US flip-flop on punitive tariffs makes guidance challenging for banks
DBS's 1QFY2025 net profit was inline while UOB's net profit missed by 3%. Both banks raised general provisions citing uncertainties related to the tariff war. Photo: Albert Chua/The Edge Singapore
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US President Donald Trump’s tendency to swing from one topic to another, walk back on tariffs for some countries, postpone tariffs on most countries, and change his mind on many issues by the hour makes it difficult for businesses to commit to investing in manufacturing, or anything else.

United Overseas Bank (UOB) has temporarily paused its guidance and outlook on net interest margins (NIM), fee income and loan growth due to the uncertainty and volatility caused by the Trump administration.

In a results briefing on May 7, group CEO Wee Ee Cheong says: “It’s still a very fluid situation, and the impact is too early to quantify. The global outlook has changed significantly. The world order has been disrupted by US tariffs. While it is too early to quantify the exact impact, we expect growth to slow in the near term.”

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