Singapore says exports worth US$7.4bil affected by new US tariffs
The US imposed the tariff because Singapore has no law banning imports made with forced labour and no reciprocal trade agreement with Washington committing it to introduce one.
Singapore's trade with the United States, valued at around S$2.5 trillion annually, will be impacted by new tariffs imposed by the US. According to Trade Minister Gan Kim Yong, approximately one-third of Singapore's exports to the US, valued at S$9.5 billion (US$7.4 billion), will be subject to a 12.5% tariff effective July 24. These tariffs, enforced under Section 301 of the US Trade Act of 1974, affect products such as optical instruments, chemicals, and pharmaceuticals.
However, energy-related goods, certain electronics, aerospace products, semiconductors, and pharmaceuticals are exempt. The US cited Singapore's lack of a law prohibiting the import of goods produced with forced labor, and its absence from an Agreement of Reciprocal Trade with the US, as reasons for the tariff. Notably, no other 60 economies, including those with existing prohibitions, received a full exemption from the tariff.
Gan acknowledged that Singapore's goods and services trade, comprising S$1.4 trillion, would face significant implications should any import prohibition arise. As a major trading hub, Singapore's economy is deeply intertwined with global trade, with the US trade surplus with Singapore amounting to US$3.6 billion in 2025.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
