The Singapore Business Federation (SBF) has introduced a new playbook aimed at helping local companies respond to the growing challenges posed by changing United States (US) tariff policies. Titled Navigating U.S. Tariffs, the guide offers practical advice to support businesses, especially small and medium-sized enterprises (SMEs), in mitigating the impact of these tariffs and preparing for long-term changes in global trade.
The launch comes in response to a recent poll conducted by SBF, which highlights growing anxiety among Singapore companies over the financial and operational risks caused by the new tariff measures.
Survey reveals significant concerns among businesses
SBF conducted a poll from 11 to 23 April 2025, gathering responses from nearly 300 business leaders across various industries. The results revealed that 81% of companies expect the US tariffs to negatively affect their operations over the next six months, with 28% predicting a severe impact. Larger companies and multinational corporations (MNCs) reported even higher levels of concern, with 89% expecting adverse effects compared to 78% of SMEs.
About half of the respondents said they were directly or indirectly exposed to the US market. Nearly one in five of those businesses reported that more than 50% of their annual revenue comes from the US. MNCs showed higher exposure levels at 62%, while SMEs stood at 50%.
Three in four businesses anticipate a drop in revenue, and one in two foresee a rise in operational costs. Two in five companies reported already experiencing the effects of the tariffs, with SMEs more impacted (40%) than MNCs (31%). Beyond pricing concerns, respondents also flagged currency volatility (60%), supply chain changes (51%), and the risk of retaliatory trade measures (45%) as key issues. In response, many companies intend to increase prices, though a majority plan to absorb some of the cost hikes to stay competitive.
Cashflow disruptions are also a concern, with half of the businesses affected by delayed, postponed, or reduced customer orders and unpredictable ordering patterns. As a result, 60% of companies anticipate a greater need for working capital. Notably, 24% of SMEs reported a significant increase in capital needs, compared to 14% of MNCs.
Businesses are also calling for government support, including tax reliefs, financial assistance, regulatory flexibility, and workforce measures. Seven in ten stressed the importance of timely updates and clearer guidance on shifting trade regulations and Free Trade Agreement (FTA) compliance.
Playbook outlines phased approach to strengthen resilience
In light of these findings, SBF’s Centre for the Future of Trade and Investment (CFOTI), in partnership with organisations such as DBS Bank, DHL Express Singapore, Pacific International Lines, PwC Singapore, and Rajah & Tann Singapore LLP, developed the Navigating U.S. Tariffs Playbook.
The guide outlines a three-phase approach for companies to respond effectively:
In the first phase, Make Sense (0–3 months), businesses are encouraged to assess risks and stabilise operations through financial assessments, contractual reviews, and analysis of Harmonised System (HS) codes and foreign exchange exposure.
The second phase, Take Action (4–12 months), focuses on adjusting supply chains, leveraging Singapore’s FTAs, securing funding, and adopting dual sourcing or tariff-neutral hubs.
The final phase, Plan Ahead (12 months and beyond), advises businesses to build long-term resilience through digital transformation, innovation, market diversification, and shifts in business models. Suggestions include exploring green finance and integrating digital supply chain solutions.
SBF calls for strategic repositioning, not just reaction
SBF’s Chief Executive Officer, Kok Ping Soon, stated that the inconsistent nature of US tariff policies has created uncertainty for local companies. “The on-again, off-again erratic tariff policies by the US have created deep uncertainty for Singapore businesses. Our poll shows strong concern across SMEs and MNCs alike, particularly for those in trade-reliant sectors. More than the actual tariffs, it is the uncertainty over the final outcome that is paralysing business investment,” he said.
He added that the Playbook provides structured, time-based guidance to help businesses act. “This playbook gives them a structured way to assess where they stand, what they can do, and how to prepare for the longer-term shifts in global trade. It’s not about reacting—it’s about repositioning.”
To complement the Playbook, CFOTI will also host workshops and briefings focused on tariff rule interpretation, FTA usage, and trade compliance. These sessions will be supported by a network of legal, financial, and logistics experts to help businesses manage contracts, arrange financing, and rework supply chains. CFOTI Trade Advisors will also be available for one-on-one consultations to assess specific risks and identify tailored strategies.
These efforts aim to help companies not only understand the challenges ahead but also apply the Playbook’s strategies in a way that fits their industry, business model, and market focus.
