Singapore Considers US Tariff Reduction

Singapore is being careful about making deals to get a lower tariff from the US, said Deputy Prime Minister Gan Kim Yong.

Gan said the government must think carefully before responding to US requests and will keep talking to the US Trade Representative.

Any import ban would greatly affect Singapore, a big trading hub with $1.95 trillion in trade each year.

Businesses might face high costs from checking their supply chains and doing investigations.

These measures could also affect Singapore's trade with other countries.

The US put tariffs on 60 economies, including Singapore, which got the highest rate.

Singapore does not have a law against importing goods made with forced labor, which is why it got the highest tariff.

Gan said Singapore needs to carefully consider what a trade agreement with the US would mean.

Such an agreement might involve more than just banning imports, like controlling exports to certain countries.

These wider implications need to be thought through before Singapore decides what to do.

MP Yip asked about the impact of the tariff and if the government would help affected exporters.

About one-third of Singapore's exports to the US, worth $9.5 billion, are affected by the new tariff.

The tariff does not apply to energy, electronics, or aerospace products.

Some products, like pharmaceuticals and semiconductors, are already subject to separate US tariffs.

The new tariff raises Singapore's overall tariff rate by 0.7 percentage points.

Singapore talked to the US Trade Representative during the investigation and said there's no evidence of forced labor in Singapore.

The US has a trade surplus with Singapore, which means the US sells more to Singapore than it buys.

The government is talking to businesses to understand their concerns and help them adjust to the new tariff.

It will keep discussing the issue through the Singapore Economic Resilience Taskforce.

The task force is working with partners to support businesses and workers affected by the tariff.

The government has measures in place to help companies adapt, like the Business Adaptation Grant.

It also enhanced existing initiatives, like raising grant support levels for internationalization schemes.

A one-off cash grant was introduced to help small and medium-sized enterprises cope with higher costs.

The government and the Employment and Employability Institute have expanded career services for workers.

The Ministry of Manpower launched a program to help fresh graduates gain industry experience.

The government will keep working with businesses and workers to provide targeted support.

It will also strengthen Singapore's competitiveness and keep the economy resilient in an uncertain global trading environment.

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