Singapore said new US tariffs will affect exports worth $7.4 billion, with around one-third of its shipments to the US facing a 12.5 per cent duty imposed under Washington’s trade measures
New US tariffs will affect exports worth $7.4 billion from Singapore, with around one-third of the city-state’s shipments to America facing a 12.5 per cent duty, Trade Minister Gan Kim Yong said.
Gan told parliament that around one-third of the country’s exports to the US would be affected by the new duties announced on July 24.
The tariffs, imposed under Section 301 of the US Trade Act of 1974, will hit shipments including optical instruments and chemical products, Gan said.
However, several key sectors have been exempted from the additional duties. These include energy and energy-related products, certain electronics, aerospace products, semiconductors and pharmaceuticals.
Why has the US imposed tariffs on Singapore?
Washington has linked the tariffs to concerns over forced labour rules, saying Singapore does not have a law prohibiting imports of goods produced using forced labour.
The US has also cited the absence of a Reciprocal Trade Agreement between the two countries that would commit Singapore to introducing such legislation.
Gan said Singapore has not found any evidence that it is involved in trade involving goods produced through forced labour.
“Importantly, none of the 60 economies, including those that already have such prohibitions in force, received a full exemption from the tariff,” Gan said, referring to other trading partners facing similar measures, including the European Union and China.
More from BusinessSingapore faces trade policy dilemma
Singapore, one of the world’s biggest trading hubs, said it would need to carefully evaluate any potential agreement with Washington.
Gan said discussions could involve commitments beyond restrictions on forced labour-linked imports, including export controls and measures relating to third countries.
He warned that any changes to Singapore’s trade rules could have wider implications given the country’s role as a major global trading centre.
Singapore’s goods and services trade totals around S$2.5 trillion annually, with goods trade accounting for about S$1.4 trillion, according to Gan.
“Any import prohibition would have significant implications,” he said.
Wider impact of US tariff push
The latest move comes as the US expands tariff measures against several trading partners as part of its broader push to address trade imbalances and strengthen domestic industries.
Singapore has traditionally maintained close economic ties with the US. According to data from the Office of the US Trade Representative (USTR), the US recorded a trade surplus of $3.6 billion with Singapore in 2025.
The city-state is a major manufacturing and logistics hub in Asia, with strong links to global supply chains, particularly in electronics, chemicals, biomedical products and advanced manufacturing.
Analysts have warned that rising tariffs and trade restrictions could force companies to reassess supply chains, especially in industries dependent on cross-border production networks.
While Singapore’s semiconductor and pharmaceutical exports have been excluded from the latest tariff measures, businesses remain cautious about the broader impact of increasing trade barriers on global commerce.
With inputs from agencies.
