US President Donald Trump has announced a 10% tariff on imports from Singapore, a move expected to significantly affect local businesses. Nearly half of these companies plan to pass on the increased costs to their customers, according to a recent survey. Yogesh Sangle, Global Head of Instarem, offers insights on how businesses can navigate these rising operational costs amidst economic uncertainty.
The tariffs are likely to hit sectors such as manufacturing and those dependent on export-focused supply chains the hardest. Sangle suggests that instead of absorbing the costs or transferring them to customers, small and medium-sized enterprises (SMEs) should seek efficiencies elsewhere. “This could include renegotiating supplier contracts, consolidating software and service subscriptions, or reducing overheads through smarter automation and outsourcing,” he advises.
One often overlooked area for potential savings is in the management of financial transactions. Sangle highlights that foreign exchange markups and cross-border transfer fees can quietly erode profit margins, particularly for SMEs making regular international payments. By adopting smart, transparent financial solutions, businesses can reduce these hidden costs and gain better control over cash flow.
In conclusion, whilst the new tariffs present challenges, they also offer an opportunity for businesses to reassess and optimise their operations. By focusing on cost-saving measures and efficient financial management, Singaporean companies can not only weather the storm but potentially reinvest savings into growth, even in uncertain economic times.
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