Singapore manufacturers adjust to higher US tariff, hold off on major production shifts
Some firms are looking to improve productivity in response to the new 12.5 per cent duty, while businesses also face challenges working out which products are affected and how much they have to pay.
Singapore manufacturers, especially those exporting to the United States, are grappling with the impact of a new 12.5% US tariff. The tariff, implemented on July 24 following a US Section 301 investigation into 60 trading partners, affects about one-third of Singapore's domestic exports to the US. Certain products, such as pharmaceuticals, semiconductors, and some electronics, are exempt from the tariff.
Companies like Tee Yih Jia, a food manufacturer, are facing added cost pressures from the tariff alongside elevated ocean freight rates. Despite the challenges, some firms are opting for productivity improvements, such as automation and demand forecasting, rather than immediate shifts in production locations. Medical device manufacturers, however, are taking a longer-term approach due to the complexity of shifting production quickly, as regulatory compliance and patient safety are paramount.
Determining which products are affected and the extent of the tariff payment can be complicated, especially for goods containing parts from multiple countries.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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