Singapore's stock market is among the least affected by the US tariff tsunami, with the STI down 0.3%

[SINGAPORE] Local stocks were relatively untouched from the carnage wreaked on global stock markets by President Trump's sweeping tariffs, which threaten to disrupt global commerce. Investors, grateful that Singapore was slammed with the lowest duty of 10%, kept their heads during the trading session on April 3.

The "keep calm and carry on" approach left the Straits Times Index (STI) down just 0.3%, or 11.98 points, at 3,942.23, as losers outnumbered gainers 329 to 216 on strong transaction of 1.3 billion securities worth $1.9 billion.

Market analysts noted that Singapore’s relatively light tariff burden reflects its strong trade relations with the U.S., which imports critical electronics and machinery from the city-state. However, concerns linger over potential secondary effects, particularly if global supply chains face prolonged disruption. “While direct exposure is limited, Singapore’s open economy remains vulnerable to broader sentiment shifts,” said a senior economist at Maybank Kim Eng.

Wall Street had another wild session overnight, with the three major indices rising by about 0.7%, while futures trading suggested significant drops ahead.

Major regional markets suffered a significant damage. The Nikkei in Tokyo plummeted 2.8%, the Kospi in Seoul down 0.8%, Hong Kong's Hang Seng fell 1.5%, and Australian shares lost 0.94 percent after halving their losses over the day.

Despite China receiving a 34% reciprocal duty on top of previous levies, the Shanghai Composite fell only 0.2%.

The muted reaction in Chinese markets suggests investors may have already priced in escalating trade tensions, with some betting on government stimulus to cushion the blow. “Beijing has tools to stabilize growth, including fiscal spending and liquidity injections,” noted a strategist at CICC. Still, sectors like semiconductors and industrials—key U.S. targets—could face sustained pressure if retaliatory measures escalate.

According to OCBC Global Markets Research, Singapore's 10% tax is a "silver lining" because it is "relatively mild" when compared to levies levied on China, Vietnam, and many other Asean countries.

"Singapore's resilience will depend on how well it adapts to shifting trade flows, potentially benefiting from companies diversifying away from the more heavily tariffed countries, while managing broader economic uncertainties and financial market volatility," the statement read.

Meanwhile, trade-dependent sectors such as shipping and logistics saw mixed reactions. While some firms with diversified routes held steady, others with heavy U.S. exposure faced selling pressure. “The real test will be whether supply chains reconfigure long-term,” said a trader at Phillip Securities. “Singapore’s ports and manufacturing hubs could gain—or lose—depending on how quickly businesses adjust.”

OCBC Bank fell 0.8% to $17.09 after announcing plans to provide £10 billion (S$17.4 billion) in finance to encourage foreign direct investment in Britain. UOB down 1.8% to $36.88, while DBS Bank fell 1.1% to $45.52. China-based Yangzijiang Shipbuilding was the STI’s worst performer, finishing 3.8 per cent lower at $2.26.

The shipbuilder’s sharp drop underscores investor wariness toward China-linked firms amid the tariff spat. Yangzijiang, which derives a significant portion of revenue from global trade routes, faces heightened risks if shipping demand weakens or trade lanes shift. “Commodity and container shipping rates are already under scrutiny,” said an analyst at RHB. “Further disruptions could squeeze margins industry-wide.”