Prepare for enduring high costs on US exports: Deputy PM Yong

Businesses must also prepare for greater scrutiny over their production and supply chains.

Businesses must be prepared that exports to the United States will cost more, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said during the ASEAN Conference 2025.

“We can not bank on the possibility that the tariffs will go away after four years with a different US administration,” Yong said.

He said that there is a growing bipartisan consensus within the US on the use of tariffs to achieve fair trade with the world, as well as to ‘reshore’ or ‘near-shore’ critical industries.

Whilst many businesses are currently pushing back, Yong said that once they have invested in the US, their incentive will be to ensure that these tariffs stay in place to protect their investments.

“Second, businesses must prepare for greater scrutiny over their production and supply chains, and set up separate lines for exports to the US vis-à-vis the rest of the world,” the Deputy Prime Minister said.

To benefit from lower tariffs, especially in sectors such as steel, autos, and pharmaceuticals, companies must be prepared to meet the US’ conditions over their production and supply chains.

“In addition to differentiating their production and supply chains, companies must diversify into new markets, products, and services,” Yong said.

He noted that there is an effort amongst like-minded partners to preserve an open global trade environment. Still, businesses must be prepared for a more protectionist landscape.

“At the same time, there will be new opportunities in new areas such as the digital economy and new markets,” Yong concluded.