Trump Hits Singapore With 12.5% Tariff Affecting One-Third of Exports to US

The USTR investigation, which started in March and concluded in July, placed Singapore among 45 economies that will face 12.5% duties. US Trade Representative Jamieson Greer said it was “well past time” for trading partners to adopt and enforce prohibitions on trade in goods produced with forced labour. Goods from about 10 trading partners with existing forced-labour restrictions, including Mexico, Britain, Canada, and India, will be subject to 10%. Goods from Japan, Switzerland, and South Korea will be taxed at 12.5% in a manner that complies with their trade agreements with the US.

Singapore’s Ministry of Trade and Industry (MTI) said the new tariff replaces a 10% global levy under Section 122 that was imposed immediately after the US Supreme Court struck down Trump’s signature reciprocal tariffs in February. MTI said on 24 July that it will continue to engage the USTR to explore options on the matter.

Products subject to Section 232 tariffs, such as primary metals (steel, aluminium, and copper), downstream derivative products, and specific strategic goods such as cars, trucks, and wood products, are exempted from the new tariff measure. Some exports will also remain exempt, including energy and pharmaceutical products, certain electronics, aerospace products, semiconductors, and metals used in currency and bullion.

Singapore is also subject to USTR Section 301 investigations into acts, policies, and practices relating to structural excess capacity and production in manufacturing sectors. The Trump administration is using Section 301 of the Trade Act of 1974 as the legal basis for the new tariff. Experts anticipate immediate lawsuits once the tariff takes effect, as using the statute to apply blanket tariffs to dozens of countries “stretches the law beyond Congress’ intent.”

Lennon Tan, president of the Singapore Manufacturing Federation, said on 24 July that the characterisation underpinning the tariff does not reflect the standards its members uphold. He noted the impact on Singapore manufacturing companies will be real, adding: “Our members face uncertainty over whether further duties may be layered on.”

The Singapore Business Federation (SBF) said businesses here do not condone forced labour and support efforts to uphold responsible and ethical supply chains. SBF chairman Mark Lee called for “clear guidance and adequate transition periods” to help businesses comply effectively. He added that any new regulatory requirements should be “carefully studied and developed in close consultation with the industry.”

Foreign Minister Vivian Balakrishnan told reporters on 23 July, after wrapping up a week of meetings at the ASEAN Foreign Ministers’ Meeting in Manila, that he had raised the matter during a bilateral meeting with US Secretary of State Marco Rubio.