SG startups’ love story with the US unfazed by tariff threats

For many brands in Asia, turning to the US to boost sales is a no-brainer. The country is the world’s largest consumer market and often leads to big business for those who have successfully expanded there.

But US president-elect Donald Trump’s threats to impose import tariffs of 10% to 20% across the board – and 60% or more for goods originating in China – could unwind some of the progress made.

Image credit: Timmy Loen

If imposed, the tariffs will apply both to finished goods produced overseas and raw materials imported to manufacture products in the US.

Staying put… for now

Singapore-based firms, including gaming chair company Secretlab, smart locks firm IglooCompany, and furniture brand Castlery, have made significant investments in the US in recent years and reaped handsome benefits.

Castlery, for instance, saw “explosive” growth as a result of an aggressive expansion effort in 2019.

Tech in Asia spoke to several consumer brands and brand operators based in Singapore, all of which derive a significant portion of their sales from the US.

While the proposed tariffs have given some pause in how they’re thinking about their supply chains, companies say they’re staying put – at least for now.

For many businesses, the US is too large a market to ignore.

Sant Qiu, whose firm, Maneuver Marketing, has dealt with tariffs imposed by Trump in his previous term, notes that dealing with tariff-related issues is “easier” than drastically changing tacks to focus on other markets.

Maneuver Marketing CEO Sant Qiu / Image credit: Sant Qiu

The firm operates a six-year-old direct-to-consumer health supplements brand that sells mainly to US consumers via Shopify and Amazon.

The degree of the proposed tariffs’ impact, however, could vary depending on some factors including where a firm’s manufacturing base is located, its dependence on foreign suppliers, flexibility to shift bases, as well as product categories that they deal in.

Short-term acceleration

“We’re undeterred”

The fittest will survive