Singapore businesses face renewed challenges due to the uncertain global trade environment triggered by the “Liberation Day” tariff announcements by the United States (“U.S.“). In response to Singapore businesses’ concerns about the potential negative effects of these new tariffs on their operations and financial health, the Singapore Business Federation (SBF) published the “Navigating U.S. Tariffs Playbook” (“Playbook“) in collaboration with partners, like Rajah & Tann Asia, who are committed to strengthening Singapore’s trade resilience and economic adaptability amidst these challenges. Other contributors of the Playbook are DBS Bank, DHL, Pacific International Lines (Pte) Ltd and PwC.
This Playbook serves as a structured overview of key considerations that a business can reflect on and act upon in a challenging trade environment. Such considerations include:
- Short-term: Make sense of a business’ direct and indirect exposure to U.S. tariffs and prioritise immediate strategies to respond proactively to U.S. tariff impacts. Some strategic checklists a business may consider include:
- Identify exposure and supply chain disruptions.
- Analyse financial risks and supplier risks.
- Check contractual obligations and monitor ongoing developments.
- Conduct comprehensive financial resilience evaluation.
- Optimise supply chain and operation costs by, among other things, reviewing existing contracts and future-proofing new contracts.
- Mid-term: Take sensible and pragmatic business actions with structural adjustments and strategic diversification. Some key actions include:
- Increase supply chain flexibility by reducing dependence on high-risk regions.
- Build more resilient sourcing and logistics strategies.
- Strengthen financial strategy and investor confidences.
- Utilise free trade agreements (FTAs) to reduce tariff exposure and position a business’ products in fast-growing and low-tariff regions.
- Long-term: Plan ahead and futureproof the business’ operations. Some key areas that a business may consider in developing in this regard include:
- Accelerate digital capabilities of the business.
- Invest in talent, innovation culture and change management.
- Strengthen financial resilience and risk management.
- Diversify business models beyond goods and invest in innovation and research and development.
If you have queries on how to tailor the guidance in the Playbook to your business, please contact our Contact Partners for this article directly or reach us at CompetitionTrade@rajahtann.com.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
