Singapore’s top economic official has strongly warned Asian nations against retaliating against new US trade tariffs. Edward Robinson, Chief Economist and Deputy Managing Director of the Monetary Authority of Singapore (MAS) said such moves would only damage the region’s economic stability and deepen inflationary pressures.
He cautioned that tit-for-tat tariffs could trigger adverse supply shocks and complicate monetary policy for central banks. Robinson said these retaliatory actions would worsen the fragile balance between inflation control and economic growth.
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Robinson reminded regional economies that they should not react but stay adaptable and build stronger relationships within Asia. He urged countries to increase digital trade and allow more cross-border investments as better ways to respond to global trade shocks. In his view, working together would build resilience without adding pressure on consumers.
As he explained, protectionism would result in fewer options for shoppers and higher expenses at home. Government policies that react quickly to situations can result in long-term difficulties. Besides slowing down supply chains, tariffs result in misplaced resources and make life harder for buyers and producers.
Retaliation Carries Economic Risks, Not Solutions
The warning follows the recent move by the United States to impose a 10 percent tariff on Singapore despite a standing free-trade agreement. Other Asian economies have also been alerted for similar trade actions, with a broader tariff regime possibly launching by July. While details remain unconfirmed, concerns about rising trade tensions continue to grow.
Singapore’s economy is facing challenges, as the country recorded a 0.6 percent decline in the first quarter of 2025, increasing the likelihood of a technical recession. However, the Monetary Authority of Singapore says new tariffs do not cause the decline and does not plan to alter its monetary stance after recent reviews in January and April.
According to Robinson, Asia’s overall power might be weakened by regional reactions. He said not to let emotions control a person’s actions in response to pressure. If nations collaborate using innovative ideas, they will deal with global trade issues more successfully.
The MAS economist is urging companies to prepare strategically for multiple scenarios. Rising tariff threats in Asia aren’t as dangerous as the damage they can cause if the region responds incorrectly.
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