Will US tariffs derail Singapore’s job market?

Singapore has announced the formation of a national task force to support workers and businesses following the United States’ unexpected imposition of sweeping new tariffs: 10% on all imports.

These tariffs, including on countries like Singapore that already run trade deficits with the US, are expected to dampen global economic growth, reduce demand for exports, and increase job uncertainty.

Prime Minister Lawrence Wong described the move as a “fundamental rejection” of WTO rules and a turning point away from globalisation.

The task force, led by Deputy Prime Minister Gan Kim Yong, will focus on addressing immediate business concerns, workforce resilience, and long-term adaptation. It will include representatives from Singapore’s economic agencies, the Singapore Business Federation, the Singapore National Employers Federation and the National Trades Union Congress.

While recession is not guaranteed, slower growth, potential retrenchments, and the threat of a global trade war are serious concerns.

How US tariffs will affect Singapore’s job market

The news of US tariffs and the creation of Singapore’s national task force is a clear signal that the job market is about to enter a turbulent period.

1. A slowdown in growth means a softening job market

The US tariffs, including a blanket 10% rate on all imports, are expected to depress global economic growth. For Singapore, which is an export-driven economy, this translates into weakened demand for sectors such as manufacturing, wholesale trade, finance, and insurance.

In practical HR terms, this could mean a hiring slowdown, tightened wage growth, and a potential uptick in retrenchments – especially in firms heavily reliant on trade flows.

“Slower growth will mean fewer job opportunities and smaller wage increases for workers,” the Prime Minister said.

HR leaders will therefore need to reassess their workforce and scope of work; freeze non-essential hiring; and strengthen internal mobility so that talent can be redeployed efficiently.

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2. Reskilling and redeployment will be critical for survival

Singapore’s response of creating a national task force involving unions, employers, and economic agencies proves the necessity of a whole-of-society approach towards resilience. The inclusion of the NTUC hints at impending job displacements or restructuring.

As such, the era of lifetime employment in static roles is over. Sectors will need to adapt or re-allocate resources to maintain stability. Workers will need to be redeployed. Skillsets will need to be sharpened and refreshed.

For HR, this means accelerating their learning and development (L&D) initiatives. Reskilling programs should focus on future-ready skills such as digital fluency, supply chain agility, AI-adoption literacy, and service sector flexibility.

L&D programmes will become a key investment to ensure business continuity.

3. The end of globalisation as we knew it

Perhaps the most profound message came when Wong declared: “The era of rules-based globalisation and free trade is over.”

Multinational companies and global HR teams will likely find themselves shifting away from the assumption of borderless trade and easy talent mobility. It calls for contingency planning.

For example, how will businesses prepare for supply chain localisation, remote work talent pools, or the repatriation of key functions back to their home countries?

Talent acquisition strategies must now account for possible regulatory and trade fragmentation. In other words, workforce planning should include scenarios where access to global talent or outsourced labour might be limited, more costly, or slower to scale.

4. The return of industrial policy and bilateral bargaining

As Prime Minister Wong pointed out: the US tariff move is seen as a rejection of WTO’s multilateral norms. If other countries follow suit, international trade will increasingly be shaped by bilateral power plays. Smaller economies like Singapore risk being “sidelined,” Wong warned.

This has two critical HR implications:

1. The risk of sudden disruptions in markets or sectors due to trade disputes
2. The increased value of regional talent strategies

In this new normal, HR leaders must develop more robust labour market intelligence – especially at the regional level – and adapt talent strategies to fit the geopolitical mood.

Southeast Asia’s interconnected supply chains may shift, but with that comes opportunity for talent redeployment or upskilling within ASEAN.

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5. Communication, clarity, and care are crucial

Gan stressed that communication and information-sharing will be a priority for the task force. During economic uncertainty, transparent messaging about business performance, job security, and available support systems can reduce anxiety and maintain morale across organisations and teams.

HR will thus play a pivotal role in helping employees understand the “why” behind organisational changes. Whether it’s supply chain shifts, reduced bonuses, or altered job scopes, context matters.

Leaders will need to keep internal communications empathetic, informative, and timely.

Crisis as catalyst for transformation

This is a defining moment not just for policymakers, but for HR leaders too. The economic headwinds from the US tariffs mark a fundamental reshaping of the global economy.

But in every disruption lies opportunity. HR leaders who act now – that is, by championing workforce resilience, prioritising skills of the future, and embedding agility in their organisational DNA – won’t just weather the storm. They’ll help their organisations emerge stronger on the other side.

Now is the time to think like a strategist, act like a coach, and lead like a realist. The task force may be national, but the transformation starts with every business.