About one-third of Singapore’s exports to the US, valued at S$9.5 billion (US$7.4 billion), will be affected by a new 12.5% tariff, raising fresh concerns for manufacturers of optical instruments and chemical products.
According to Reuters, Trade Minister Gan Kim Yong told Parliament that the tariff, imposed on July 24 under Section 301 of the US Trade Act of 1974, would cover roughly a third of the city-state’s shipments to the US.
Energy products, selected electronics and aerospace goods, semiconductors and pharmaceuticals are exempt from the levy.
Washington said the tariff was imposed because Singapore does not have legislation prohibiting imports produced using forced labour or a reciprocal trade agreement committing it to introduce such a ban.
Gan stressed, however, that none of the 60 economies subjected to similar measures, including those with forced-labour import prohibitions, received a full exemption.
Singapore has maintained there is no evidence that it is involved in trade linked to forced labour.
The government will carefully assess any potential agreement with Washington, Gan said, warning that it could involve commitments extending beyond import restrictions to export controls or measures affecting trade with third countries.
Such conditions could carry significant consequences for Singapore, where annual goods and services trade totals about S$2.5 trillion, including S$1.4 trillion in merchandise trade.
US figures show Washington recorded a US$3.6 billion trade surplus with Singapore in 2025.
