Semiconductor and Shipbuilding Shares Slump on Heat from Trump Tariffs

Stocks in certain industries listed in Singapore suffered hits of varying severity on Friday (April 4) following US President Donald Trump’s “Liberation Day” tariffs.

Market Reaction

As at 10.52am, the Straits Times Index tumbled by 105.44 points or 2.7 per cent to 3,836.79 – the largest single-day drop since March 2020.

On the Singapore Exchange, companies across different industries such as chipmaking and shipbuilding faced dips in their share prices of up to 8 per cent in early trade this morning.

Sectors Affected

Semiconductors

While semiconductors have been exempted from tariffs for now, analysts from Nomura research noted in an Apr 3 report that the space is hardly “immune”.

This is owing to how the US is likely to push for another round of tariffs on specific products, which could include semiconductors.

Semiconductor manufacturer UMS dipped 2.8 per cent or S$0.03 to S$1.03. AEM also fell 3.9 per cent or S$0.05 to S$1.23, as at 10.38am.

As at 10.40am, Grand Venture Technology tumbled 4.1 per cent or S$0.03 to S$0.695.

Banks

The trio of three Singapore banks have been a sea of red since early trade. DBS slipped 4.8 per cent or S$2.17 to S$43.35, UOB fell by 3.4 per cent or S$1.25 to S$35.60, and OCBC dipped by 2.6 per cent to S$0.44 to S$16.65 as at 10.43am.

Shipbuilding

Shipbuilders, who are highly exposed to global trade, generally slumped.

Global offshore marine group Nam Cheong plunged by 9.2 per cent or S$0.055 to S$0.54, as at 11.10am.

Seatrium fell by 3.5 per cent or $0.07 to S$1.93, Yangzijiang Shipbuilding dipped by 4.9 per cent or S$0.11 to S$2.15, and Samudera Shipping is down by 4.7 per cent or S$0.04 to S$0.81, as at 11.12am.

Keppel fell 3 per cent or S$0.21 to S$6.65 as at 11.48am.

Glovesmakers

A sector in the region that’s expected to be a potential winner is the glove-makers, as the reciprocal tariff imposition by the US is “neutral to positive” for Malaysian glovemakers, writes Raymond Choo, analyst from Kenanga Investment Bank.

“The overall Malaysian glove makers are still net positive. Factoring in the over 100 per cent tariffs imposed on China medical gloves from 2025 to 2026, the pricing gap between Malaysia and China producers for US exports is still wide,” he explained in an Apr 3 report.

All three Malaysian glovemakers listed in Singapore were mixed in morning trade. Medical product manufacturer UG Healthcare was up 3.5 per cent or S$0.004 at S$0.118, as at 11.15am.

On the other hand, as at 11.18am, Top Glove was down 3.9 per cent or S$0.01 at S$0.245. Riverstone Holdings was also trading 1.6 per cent or S$0.015 at S$0.91, as at 11.21am.

Conclusion

The market reaction to the US President’s tariffs has been severe, with various sectors experiencing significant dips in share prices. The Straits Times Index also saw its largest single-day drop since March 2020.

Frequently Asked Questions

Q: What is the impact of the US President’s tariffs on the Singaporean stock market?

A: The tariffs have led to a significant decline in the Straits Times Index, with various sectors experiencing dips in share prices.

Q: Which sectors have been most affected by the tariffs?

A: Semiconductors, banks, and shipbuilding have been among the sectors most affected by the tariffs.

Q: Are there any sectors that may benefit from the tariffs?