Anna Agoncillo
U.S. President Donald Trump’s tariff policies introduced significant changes that could impact online shoppers in Singapore, particularly when buying from American retailers or goods subject to U.S. trade regulations.
UNDERSTANDING TARIFFS
Tariffs are taxes imposed on imported goods, and the U.S. has long used them to regulate trade. These taxes can lead to higher prices for goods and services, influencing overall consumer spending and contributing to inflation.
IMPACT ON ONLINE SHOPPING
One key change under Trump’s tariff plan was the end of the tax exemption for low-value Chinese imports, known as the “De Minimis” provision. This provision previously allowed certain low-cost goods from China and Hong Kong to enter the U.S. duty-free. The policy change, effective last May 2, means that such goods are now subject to tariffs before reaching the U.S. market.
While this policy directly targets imports into the U.S., its ripple effects can be felt globally, including by Singaporean consumers.
WHY SINGAPOREANS ARE AFFECTED
Many Singaporeans shop online from U.S.-based platforms or purchase U.S. brands that rely on Chinese manufacturing. When tariffs increase the cost of these goods before they even reach American warehouses or online retailers, the additional costs are often passed down the supply chain (i.e., including to international buyers).
According to Professor Kirthi Kalyanam from Santa Clara University’s Leavey School of Business:
“You will definitely be paying more and there’s no question about that,” he explains. “Customers should also expect disruptions and delays as these new tariff policies are rolled out.”
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PRICES INCREASE BY PRODUCT TYPE
If a broad 25% tariff is fully applied to finished goods, near-term price increases are estimated at:
a. 9.5% for investment goods (e.g., electronics, machinery)
b. 2.2% for consumer goods (e.g., clothing, home products)
For Singaporeans, this means that electronics or other high-value items bought from U.S. platforms could become significantly more expensive. Additionally, shipping delays or disruptions may occur due to the uncertain implementation of trade policies.
INFLATION & ECONOMIC EFFECTS
The impact of these tariffs on global inflation depends on several factors, including the proportion of imports in affected goods and how they contribute to overall pricing indexes. The Yale Budget Lab estimated in 2025 that average U.S. tariff rates could hover around 25%, though the exact rate may vary by product and country.
IN A NUTSHELL
Image Credits: unsplash.com
Although the U.S. tariff changes primarily target goods entering the U.S., they indirectly affect international consumers like Singaporeans by increasing prices and delaying shipments of American and other products. If you’re shopping online from U.S. platforms, especially for items involving Chinese manufacturing, expect higher costs and slower delivery times.
MoneyDigest