Singapore PM calls for zero tariffs in ASEAN to take on Trump’s trade duties: ‘We are better resourced’

Amid escalating Donald Trump tariff threats and rising trade tensions, Singapore Prime Minister Lawrence Wong on Wednesday said stronger economic integration among ASEAN countries is essential, emphasising the need to address tariff barriers and enhance trade cooperation within the region.

“We should aim for 100% tariff elimination across the region and boost intra-ASEAN trade. We should further reduce non-tariff barriers to make it easier for businesses to operate across ASEAN. We should also conclude the ASEAN Digital Economic Framework Agreement (DEFA), and upgrade our FTAs with key partners like China, India and the Republic of Korea,” said Wong.

Speaking at the S Rajaratnam Lecture, Wong also called for accelerating the development of the ASEAN Power Grid, saying cross-border electricity trade would drive the region’s transition to green energy, attract investment, and strengthen energy security.

“We should also accelerate the development of the ASEAN Power Grid. By facilitating cross-border electricity trade, the Grid will help our region to transition faster to green energy, draw in new investments, create better jobs, and strengthen our collective energy security,” added Lawrence Wong.

He said that the world needs to work together more, not less, and warned against countries turning away from each other.

Singapore to take active role in global stability

Wong said Singapore would not just watch from the sidelines and that it will “respond with agility and resolve” to help build a more stable and inclusive world.

“For a small open economy like Singapore, these global developments are deeply worrying. Our prosperity has depended on a stable rules-based global order and the free flow of trade, capital, people and ideas… Despite our limitations as a small state, we cannot afford to be a passive bystander in this evolving landscape. Instead, we must respond with agility and resolve, and actively shape our own destiny,” said Wong in his address.

Wong said the old global order is breaking down and a new one will eventually take its place. He said this new order is likely to be more divided, less coordinated and more competitive.

He also added that it will not be led by a single superpower or agreed upon by all major powers, but shaped by the actions and choices of many different countries.

“Singapore today is not without agency. We are better resourced, more capable, more connected than we were in 1965. We have forged strong friendships around the world. The Singapore brand is well regarded, and we enjoy a deep reservoir of international goodwill,” he said.