MTI hits back as US launches overcapacity probe

US claimed a USD surplus for Singapore but MTI cited US data showing a $37.6b deficit.

The Ministry of Trade and Industry (MTI) said it will engage the US Trade Representative (USTR) for clarification after Singapore was included in a Section 301 investigation into excess manufacturing capacity.

The USTR notice stated Singapore had a bilateral trade surplus of $37.6b (US$27b) with the US in 2024, which is against the recorded $2.4b (US$1.7b) trade deficit and $35.1b (US$25.1b) services deficit, the MTI said, citing US data. Combined, this resulted in a deficit of $37.6b. 

MTI also noted in a press statement that industrial space occupancy remains “very healthy at around 90%,” questioning claims of expanding manufacturing capacity amid falling occupancy.

The ministry said it has provided these details to the USTR and will continue to engage for clarification. Businesses and stakeholders will be updated as the process evolves.

The Section 301 probe, announced on 11 March, covers 16 economies, including China, the EU, India, Japan, and Singapore, and could result in tariffs later in 2026.

The law targets foreign acts or policies that burden or restrict US commerce.