Nomura Warns Singapore Takes on Over 20 Percent of U.S. Tariff Costs

(MENAFN) Advanced manufacturers in Asia, particularly in Singapore, have taken on more than 20 percent of U.S. tariff expenses, according to a report by financial services firm Nomura cited by local media on Monday.

The Japanese group revealed that Asian exporters are absorbing roughly one-fifth of the tariffs imposed by the U.S., with the remainder being transferred to buyers. However, this impact varies sharply across countries.

Nomura highlighted that Singapore, due to its advanced manufacturing sector and high-value exports, is better equipped to bear the tariff costs, whereas other ASEAN countries have not absorbed any of these expenses.

The report highlights a clear divide: advanced manufacturers equipped with pricing power can shoulder tariff burdens, whereas producers in lower-value industries lack this ability, said Nomura analysts.

Globally, exporters are shouldering nearly 25 percent of tariff costs, the report noted, based on analysis of U.S. import price and Asian export price indices from January through July.

Looking ahead, Asia faces a “double whammy”: exporters must keep prices low to remain competitive in the U.S. market while battling stronger local currencies. This dilemma forces exporters to either pass on rising costs—potentially losing U.S. market share—or absorb them and face declining profitability.

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