The conventional narrative holds that the reintroduction-or further escalation-of tariffs will dampen market liquidity. Higher tariffs tend to disrupt supply chains and elevate operating costs, potentially constraining both public fund flows and private market deal-making. Historical instances have shown that similar tariff shocks have coincided with temporary pullbacks in liquidity, particularly in private credit and equity markets.
Singapore's recent adjustment of its 2025 GDP growth forecast to 0-2% reflects broader global developments, including changes in tariff policies and shifting market liquidity. These dynamics are impacting both public and private markets. While challenges abound, there are also emerging opportunities for asset managers and service providers willing to recalibrate their strategies and operating models to meet new market demands.
Liquidity in public and private markets: Crisis or opportunity?
