Trump, Tariff & BRICS

Trump kept his promise!

On 1 Feb, he slapped a 10 to 25% US tariff on imports from multiple countries from Mexico, Canada to China.

And likely it will kick off a larger trade war that could definitely dent the growth of many markets and likely reignite inflation.

For a small little country like Singapore, where we are a trade-dependent market and also where some of my businesses are (https://blackstormco.asia), we will be getting quite a significant impact from it all when the market opens in about 15 hours time.

1. Trade Flow Disruption — Singapore’s exports could face reduced demand due to increased costs in the US, affecting industries such as electronics, machinery, and chemicals.

2. Supply Chain Issues — Singapore’s integrated role in global supply chains might lead to disruptions, with companies reevaluating sourcing and production strategies.

3. Economic Uncertainty — This shift could lead to broader economic uncertainty, influencing investments and the stability of Singapore’s trade-reliant economy.

It will be interesting to see how the incumbent policy makers are going to counter these unreasonable demands from a much larger country.

Singapore might look to diversify trade partnerships and seek new markets to offset losses, fostering closer ties within Southeast Asia or other regions. This scenario could push Singapore to adapt swiftly, balancing challenges with strategic opportunities for growth and diversification.

Likely, this is where the Chinese will seize the opportunities to engage the many markets that are trade-dependent to ride the waves.

Words on the street that BRICS will just rise to the occasion and bring in more partners to join the ever growing pool of countries working together. Will this be realized?