Singapore says exports worth $7.4bn affected by new US tariffs

Singapore's exports to the United States, valued at $7.4 billion, will be impacted by a new 12.5% tariff imposed by the US on July 24, Trade Minister Gan Kim Yong announced in parliament. The tariffs, under Section 301 of the US Trade Act of 1974, will affect approximately one-third of Singapore's exports, comprising optical instruments and chemical products.

Exemptions include energy and energy products, electronics, aerospace products, semiconductors, and pharmaceuticals. However, the US claimed it levied the tariff due to Singapore's lack of a law prohibiting the importation of goods produced with forced labor, and the absence of an Agreement of Reciprocal Trade with the US committing to introduce such a law.

Notably, none of the 60 economies, including those that already have prohibitions in place, received a full exemption from the tariff, which also includes the European Union and China. Gan highlighted that Singapore does not have evidence of involvement in the trade of goods involving forced labor. The city-state expressed the need to carefully consider the implications of an agreement with the US, which may involve commitments beyond an import prohibition, such as export controls or restrictions on third countries.

As a major trading hub, Singapore's total goods and services trade amounts to around S$2.5 trillion annually, with S$1.4 trillion in goods. An import prohibition would have significant implications, given the scale of Singapore's trade. According to US Trade Representative (USTR) statistics, the US trade surplus with Singapore was $3.6 billion in 2025.