KPMG urges firms to plan for tariff volatility

AI, sourcing shifts cited as levers.

KPMG said Singapore companies should assume higher trade policy volatility as the United States imposes tariffs, and build resilience by diversifying revenue streams, rethinking sourcing patterns, and making operations more responsive to shocks.

Shafiqah Abdul Samat, principal advisor for trade and customs at KPMG, said the impact on Singapore firms will vary by sector and business model, with some facing margin pressure or demand shifts, whilst others could see opportunities from supply chain diversification, production re-allocation, or regional manufacturing consolidation.

She said Singapore’s competitiveness does not rest solely on tariff structures, citing connectivity, governance, operational reliability, and its position as a neutral and trusted node in global supply chains.

KPMG said AI and automation can improve supply chain visibility, strengthen compliance, and help firms move into higher-value segments, but warned that adopting AI without safeguards can introduce data, operational, or decision-making risks.

It said the priority should be responsible adoption backed by governance frameworks, and that trade policy uncertainty is likely to remain structural rather than temporary, requiring flexible supply chains, stronger regional networks, and investment in digital capability.