Singapore braces for tariff fallout, seeks US sectoral carveouts

Talks are underway to secure special arrangements for critical exports.

Singapore is seeking sector-specific concessions from the United States after being told that a planned 10% baseline tariff on imports will not be negotiable, said Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong.

Following a call with US Commerce Secretary Howard W. Lutnick, Gan revealed that the 10% tariff would act as a broad "umbrella" measure, intended to remain in place long-term.

Despite this, Gan emphasised that Singapore's trusted economic relationship with the US has opened the door for targeted negotiations.

Talks are underway to secure special arrangements for critical exports, particularly pharmaceuticals, which account for more than 10% of Singapore's total exports to the US.

Pharmaceuticals are at risk as Washington mulls further sectoral tariffs beyond existing duties on products like steel and aluminum.

Gan highlighted the urgency of protecting Singapore’s pharmaceutical trade, describing it as vital for the country's manufacturing sector and economic resilience. Negotiations with the US, he said, are still in early stages but progressing based on longstanding trust between the two nations.

Beyond tariffs, Singapore also raised concerns over continued access to high-end AI chips, essential for its growing data centre and high-performance computing sectors.

Gan said the US Commerce Secretary had expressed willingness to collaborate with Singapore to ensure strong export control systems, enabling the trusted supply of advanced technologies.

Whilst no final agreements have been reached, Gan struck a cautiously optimistic tone, stressing that both sides are committed to working quickly and creatively to resolve key issues without letting talks drag out.