Singapore’s Exports Decline as US and China Shipments Drop

Singapore’s exports experienced a significant decline in August 2025, driven by reduced shipments to its largest markets, the United States and China. Official figures released by Enterprise Singapore reveal that non-oil domestic exports fell by 11.3 percent compared to the previous year, marking a sharper decline than the 4.7 percent decrease recorded in July 2025.

The downward trend in exports is largely attributed to ongoing trade tensions between the United States and China, which have led to reciprocal tariffs and disruptions in global supply chains. These tensions have had a pronounced effect on Singapore, a country heavily reliant on trade, particularly as it navigates a 10 percent baseline tariff imposed by US measures.

Significant Drops in Key Export Categories

Shipments to the United States plummeted by nearly 29 percent in August, extending a staggering 42.8 percent decline observed in July. The sharp downturn was evident across various sectors, with exports of food preparations, including sauces, falling by 97.1 percent. Additionally, specialised machinery shipments decreased by 71.3 percent, and disk media products saw a 60 percent drop.

Exports to China also saw a considerable contraction, shrinking by 21.5 percent, which was steeper than the 12.3 percent reduction in July. Key components affected included specialised machinery, which fell by nearly 42 percent, and integrated circuits, which decreased by 36.8 percent. Notably, the export of non-monetary gold, used for industrial purposes, plunged by 96.1 percent.

Impact of Global Economic Conditions

Rajiv Biswas, Chief Economist at Asia Pacific Economics, highlighted the various factors contributing to the decline. He stated, “The drop in Singapore’s exports reflected a range of factors, notably the disruption to world trade and export supply chains caused by steep new US tariff measures.” He also pointed out that China’s slower economic growth and weaker retail sales in the third quarter contributed to reduced imports from Singapore.

Despite these challenges, Singapore recently adjusted its 2025 economic growth forecast to between 1.5 percent and 2.5 percent, an increase from the previous estimate of 0.0 percent to 2.0 percent. Nevertheless, authorities caution that the outlook for the remainder of the year remains uncertain, heavily influenced by international trade dynamics and the implications of US tariffs.

As Southeast Asia’s second-largest economy, Singapore’s vulnerability to global economic fluctuations underscores the critical importance of its trade relationships, particularly with its largest partners, the US and China.