Fewer passengers and goods in the air as a result of US tariffs impact could hurt Singapore’s aviation hub

[SINGAPORE] Wide-ranging US tariffs could weaken demand not just for air freight of goods, but also passenger travel – which could hurt Singapore as a regional air hub, said industry watchers. But Singapore’s reputation for stability and its lower tariff rates could help it weather the storm.

“These tariffs are like a receding tide that will ground all boats,” said Subhas Menon, director-general of the Association of Asia Pacific Airlines (AAPA). “Aviation may be badly affected in terms of passenger travel, cargo and its supply chain.”

Apart from lowering both cargo and passenger demand, the tariffs could worsen lingering supply chain issues and thus drive up aircraft prices.