SINGAPORE - Slower economic growth is being felt in Singapore following global tensions after the recent US tariffs, with the possibility of "a full-blown recession" not being ruled out, Singapore's Prime Minister Lawrence Wong said Thursday during the May Day Rally.

"So far, Singapore has not come under the spotlight, but you can be sure we will be put under greater scrutiny as well," he said. In April, US President Donald Trump introduced a 10-percent "minimum baseline tariff" on all imports, including those from Singapore.

The effects on businesses are "real and growing," Wong noted, pointing out cancelled or delayed orders, postponed investments, and scaled-back operations. "America is already feeling it. It will be felt around the world, and it will hit Singapore too," he added.

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Wong cautioned that the crisis "will not pass quickly," similar to the COVID-19 pandemic, which some believed would resolve within a few months, but instead led to repeated waves of outbreaks.

"For exactly how long -- no one can tell. But it is not going to be a one-year affair. So we have to be mentally prepared for the longer term, for the bumpy rides ahead, and do everything we can, to strengthen Singapore's position, because this is the biggest challenge of all," he said.

These uncertainties add to the ongoing challenges Singaporeans are already facing, such as cost-of-living pressures, which had started earlier due to global inflation. While inflation has eased, recent global developments "may cause further disruptions, and may cause further price shocks," the prime minister said.