SINGAPORE: Singapore shares fell more than 3% as trading began on Friday (April 11) following the United States raising tariffs on Chinese goods to 145 per cent. The fresh hikes were confirmed by the US on Thursday.
According to The Business Times, the Straits Times Index (STI) dropped 3.2% to 3,465.15 in early trade, with 178 stocks declining compared to 40 that gained after 102.4 million securities valued at S$239.3 million were traded.
US President Donald Trump had earlier slapped a baseline 10% tariff on most US trading partners, but on Wednesday, he said there would be a 90-day pause on higher duties for dozens of countries. The pause took effect on Thursday and will be lifted by July 9, based on a White House order.
At the same time, the US President raised tariffs on Chinese imports to 125%. That’s on top of an earlier 20% hike linked to claims that China is tied to the fentanyl supply chain. With the new hikes, total tariffs on Chinese goods this year have climbed to 145%, adding to older duties set by past administrations.
However, the latest 125% increase excludes product imports of steel, aluminium, and autos, as they’re already facing separate 25% tariffs. It also does not apply to copper, energy products, lumber, pharmaceuticals, and semiconductors, The Business Times reported on Thursday.
At Friday’s open, local banks were down. DBS dropped 4.5%, or S$1.80, to S$37.87. OCBC declined 4.2%, or S$0.65, to S$14.78, and UOB fell 3.3 per cent, or S$1.10, to S$32.11.
Other STI stocks also declined. Ground handler Sats retreated 6.4%, or S$0.17, to S$2.48. Seatrium fell 4.6%, or S$0.08, to S$1.66. Yangzijiang Shipbuilding dropped 2.6%, or S$0.05, to S$1.89.
CapitaLand Investment also dipped 1.6%, or S$0.04, to S$2.46, while Genting Singapore slipped 0.7%, or S$0.005, to S$0.69.
Still, a few stocks bucked the trend. Singapore Exchange (SGX) rose 0.2%, or S$0.03, to S$12.58 as trading activity increased over the week. Singtel also gained 0.6%, or S$0.02, to S$3.51, leading the market’s trading volume at 9:34am, with 15.4 million shares changing hands.
The fall in Singapore followed another weak session on Wall Street just after a brief relief rally on Wednesday. The S&P 500 dropped 3.5% to 5,268.05 after jumping 9.5% the day before. The Dow Jones Industrial Average lost 2.5% to 39,593.66, and the Nasdaq Composite Index fell 4.3% to 16,387.31. /TISG
