JAKARTA – Prime Minister of Singapore, Lawrence Wong, warns Singaporeans about the likelihood of a “full-blown global trade war” following US President Trump’s decision to impose reciprocal tariffs on its trade partners across the globe.

Wong said that this policy marks “a seismic change in the global order,” with US abandoning the free trade system it once helped to create through World Trade Organisation (WTO).

“Its new approach of reciprocal tariffs, country by country, is a complete rejection of WTO framework,” claimed Wong in a video uploaded by The Straits Times last Friday (4/4).

This, according to Wong, will potentially trigger other countries to mimic the US approach, imposing retaliatory tariffs and trading only based on their own interest, thus ignoring the established—albeit not perfect, said Wong—free trade system.

“Global institutions are getting weaker; international norms are eroding,” Wong warned. He added that this situation might drive many countries to exert force in order to gain more.

On the other hand, Wong reaffirmed that Singapore has decided not to impose retaliatory tariffs on the US or other countries. “But other countries may not exercise the same restraint,” he said.

Since “Liberation Day” announcement, China has been preparing a 34% retaliatory tariff on the US, to be effective on April 10.

Wong made a reference to the 1930 global trade war, induced by the reduction of international trade and retaliatory tariffs following the enactment of American Smoot-Hawley Tariff Act in June 1930, that had led to the worsening of the Great Depression.

Tariff hike, as well as growing global uncertainty, poses a significant risk on the global economy, as Wong said. “International trade and investments will suffer, and global growth will slow,” he claimed.

For the record, Singapore is placed in the lower base line of 10% import tariff by the US. However, in anticipation of what is coming, Wong said that Singapore will continue to work on partnerships with like-minded countries.

“We are more ready than many other countries, with our reserves, our cohesion, and our resolve. But we must brace ourselves for more shocks to come,” he added. (ZH)