You may soon notice a rise in the price of your favourite Apple devices, thanks to new tariffs introduced by the United States. Although Singapore isn’t the main target, the country’s close links to regional economies and the global supply chain mean you’re not entirely shielded from the effects.
Currently, Singapore faces a 10% tariff on its goods imported to the US. However, the real pressure comes from how hard neighbouring Asian countries have been hit. China, for instance, is now subject to a 54% tariff, Cambodia 49%, Vietnam 46%, and Thailand 36%. Indonesia and Taiwan each face 32%, Malaysia 24%, and the Philippines 17%.
Because so many goods sold in the US – including electronics – are built using parts or labour from these regions, the ripple effect will likely reach you as a consumer. Items partially made abroad before being finished in the US will feel the strain. In the end, this could affect what you pay at the shops and, in the long term, wages and job availability.
Apple products could become more expensive
If you’re an Apple fan, the pinch might come sooner rather than later. iPhones, iPads, and MacBooks may all see price increases. Apple’s complex global supply chain makes it particularly vulnerable to tariffs, and any changes could drive up costs.
According to Assistant Professor of Economics Mei Yuan from Singapore Management University, the electronics sector is susceptible to global trade shifts. She explained, “If Apple has to shift its production line due to tariffs or retaliatory measures from countries like China, the supply chain will be disrupted. That will likely lead to higher prices for Singapore consumers.”
In the past, Apple avoided some tariffs through exemptions, such as in 2019. However, if no such relief is granted at this time, analysts like Erik Woodring from Morgan Stanley suggest Apple could raise prices in the US by 17% to 18% just to offset the added costs.
It’s also worth noting that your current iPhone likely came from a blend of countries like China, India, Japan, South Korea, Taiwan, or Vietnam. Foxconn, a Taiwanese company, made nearly two-thirds of all iPhones in 2023. Apple is also expanding manufacturing in India, with exports totalling 1.08 trillion rupees (US$12.95 billion) in 2024.
Apple has acknowledged these risks in its official filings, stating that trade restrictions such as tariffs can seriously disrupt its business. These disruptions might increase product prices, force supply chain changes, or even lead to the withdrawal of some products altogether.
While this could hit electronics hard, the same may not apply to retail goods like clothing and shoes. Brands such as Nike and Adidas, which produce most of their goods in Asia, may hold prices steady in Singapore. For instance, Nike has 155 factories in Vietnam alone, and Adidas sourced 97% of its 2023 footwear from Asia.
So, you may not see major changes in your shoe prices yet. But electronics are a different story.
Jobs and wages may feel the pressure
It’s not just your gadgets that could be affected. Your job prospects – or someone else’s in your household – might also be at risk. Analysts warn that the US tariffs could slow global growth, especially if the US heads toward a recession.
Professor Mei believes that multinational companies may respond cautiously. “You might see hiring freezes, especially during graduation seasons when job seekers enter the market,” he said. “Salary cuts are unlikely, but expect smaller raises or delays in pay increases.”
Selena Ling, chief economist at OCBC Bank, agrees. She warned that businesses exposed to the US market might pause hiring or capital investment plans, which could impact jobs in Singapore.
Some sectors may be safe for now. Products such as copper, energy, pharmaceuticals, semiconductors, and other select minerals are exempt from tariffs. However, Ling suggested that sector-specific tariffs could still emerge, adding to the uncertainty.
Overall, employers are likely to act more cautiously due to the added complexity caused by tariffs and possible retaliatory moves. That means slower job growth and fewer opportunities, particularly in industries connected to the US market.
So, while you may not immediately feel the impact of these new tariffs, it’s worth keeping an eye on how they unfold. Whether it’s higher costs for your next iPhone or fewer job offers in the coming year, these global changes will likely touch your life in one way or another.
