NDR 2026: Not realistic to trace every shipment through Singapore to satisfy US tariff demands, says PM Wong
https://www.businesstimes.com.sg/singapore/ndr-2026-not-realistic-trace-every-shipment-through-singapore-satisfy-us-tariff-demands-says-pm-wong?ref=home-grouped-story-1
NDR 2026: Not realistic to trace every shipment through Singapore to satisfy US tariff demands, says PM Wong
The Republic must forge partnerships to solidify its interests amid global tensions
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[SINGAPORE] The Republic will not allow its ports to be used as a conduit for illegal trade, but it is unrealistic to expect Singapore to trace and verify the supply chain of every product passing through its shores, said Prime Minister Lawrence Wong on Sunday (Aug 23), as he addressed the US’ concerns over forced labour and rerouted goods.
In 2025, the US imposed its “Liberation Day” tariffs, which its courts later ruled unlawful. Washington then found another way to reimpose tariffs, this time over the alleged use of forced labour.
More recently, the US has raised concerns about Chinese goods being routed through other countries, especially in South-east Asia, to circumvent trade restrictions.
Singapore takes both issues seriously and agrees that both forced labour and the disguising of goods’ origin have no place in trade, said PM Wong in his National Day Rally speech.
Singapore thus has “clear rules and laws in place”, he added. “We enforce them and expect companies operating here to comply.” The Republic will also continue engaging the US and explaining its position.
But the larger reality, PM Wong warned, is that trade is no longer as free as it once was, nor is it shaped by economics alone.
“It is increasingly shaped by security considerations, and we should expect more of such changes to come,” he said.
This shift, he noted, is rooted in a border change in the world order. The rules and norms that have underpinned global stability for decades are being overturned, as the balance of power shifts.
The US remains the world’s leading power, but China “has risen rapidly and is now a peer competitor, with deep capabilities in many areas”.
Yet, the world is not shaped by US and China alone, he said. Europe remains a major force, India is rising rapidly and many “middle powers are asserting their interests more actively”.
This means that power is becoming dispersed, with different centres “jostling for influence, competing for markets, technology, resources and increasingly, over who sets the rules of the game”.
Escalating tensions
Tariffs are only one symptom of deeper global tensions, said PM Wong.
Greater power competition is intensifying, and while the wars in Europe and the Middle East may seem far away, “the conflicts do not always stay neatly contained”.
Other powers could get drawn in through their alliances and interests, or simply because events force their hand.
New technologies add to the risk, he said, indicating how cheap drones can now inflict serious damage, even against more powerful forces.
The risks of miscalculation and escalation are thus much higher, he warned, adding, “A regional conflict can quickly become something bigger.”
Countries are also facing more pressure below the threshold of open war – be it economic coercion, foreign interference, disinformation campaigns or cyberattacks on critical infrastructure.
“You may not see troops crossing borders, but the damage can be just as real,” he said.
These are not temporary disruptions, he noted, but a “new normal” that Singapore will have to endure and survive for many years to come.
Deepening partnerships
The Republic’s response to this new environment cannot be to retreat and turn inward, said PM Wong.
“We have succeeded by connecting to and creating value for the world,” he said, adding that these strengths depend on trust.
“Countries trust us, businesses trust us, investors trust us,” he said.
“They know Singapore is a place where the rule of law prevails, institutions are strong, and contracts and commitments are honoured.”
Singapore will thus build on this trust and deepen its links with the world by reaching out to more partners and creating more opportunities for Singaporeans, PM Wong added.
One such avenue, he added, can be through the Asean chairmanship, which Singapore will helm in 2027.
The country will do everything it can to strengthen Asean centrality and unity, deepen regional integration and “make Asean a more effective single market”.
Beyond the region, Singapore will also bolster partnerships by bringing diverse partners together, building common ground and keeping channels for dialogue and cooperation open, he added.
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