Stock Exchange in Singapore Anticipates Profit-Taking On Coming Friday
In the financial world, the U.S. economy and global trade are feeling the effects of President Donald Trump's announcement of a 100 percent tariff on imports of semiconductors and chips. This move has raised concerns among traders, particularly about the economic impact of these trade policies.
The tariffs have led to a significant increase in import prices, especially for goods from Asia, such as apparel and textiles, which have seen price jumps of up to 39%. The overall average effective U.S. tariff rate stands at 18.6%, the highest since the 1930s. This has resulted in a decrease in U.S. real GDP growth by about 0.5 percentage points annually over 2025 and 2026.
Reciprocal tariffs imposed or threatened by the U.S. also affect Asian countries directly. For example, Indonesia faces a 19% reciprocal tariff rate on all products from the U.S., and Japan faces a 15% reciprocal tariff rate. However, the U.S. has suspended the most severe tariffs on Chinese imports until November 2025 to allow ongoing negotiations, though a baseline 10% reciprocal tariff remains in place.
Meanwhile, the Singapore stock market has been on a four-session climb, gaining more than 100 points or 2.4 percent during this period. The Straits Times Index is currently just beneath the 4,260-point plateau. However, the global forecast for Asian markets is uncertain due to conflicting reports on U.S. tariffs.
In Wall Street, the major averages opened higher, slumped, and then spent the day fluctuating, ending little changed and on opposite sides. The Dow Jones Industrial Average stumble by 224.48 points or 0.51 percent to finish at 43,968.64. The NASDAQ Composite gained 73.27 points or 0.35 percent to close at 21,242.70.
Crude oil prices fell Thursday due to inconsistency in the U.S. stance on Russia and its invasion of Ukraine. West Texas Intermediate crude for September delivery was down $0.49 or 0.76 percent at $63.86 per barrel.
As the economic landscape continues to evolve, investors may lock in gains on Friday. Companies that are building in the United States are exempt from the new tariffs, which could potentially provide a silver lining in this complex global economic situation.
[1] "U.S. Tariffs: Trade War's Impact on Global Economy." The Balance, 12 Aug. 2025, www.thebalance.com/us-tariffs-trade-war-impact-on-global-economy-3306204. [2] "U.S. Tariffs and Their Impact on Asian Economies." Asian Development Bank, 12 Aug. 2025, www.adb.org/features/us-tariffs-impact-asian-economies. [3] "U.S.-China Trade War: A Timeline." Council on Foreign Relations, 12 Aug. 2025, www.cfr.org/backgrounder/us-china-trade-war-timeline.
- Investors may find a silver lining in the complex global economic situation caused by the U.S. tariffs, as companies building in the United States are exempt from the new tariffs.
- The Singapore stock market has been on a four-session climb, despite the uncertainty in the global forecast for Asian markets due to conflicting reports on U.S. tariffs.
- Meanwhile, the overall average effective U.S. tariff rate stands at 18.6%, the highest since the 1930s, and has resulted in a decrease in U.S. real GDP growth by about 0.5 percentage points annually over 2025 and 2026, raising concerns about the economic impact of these trade policies.
