AmChamSG affirms US trade surplus with Singapore in call for dialogue on tariffs

SINGAPORE – Tariffs unilaterally imposed by the United States on virtually all its trading partners, Singapore included, will have wide-ranging implications for business operations, supply chain management, and future investment strategies, according to a trade body for American firms here.

“Given Singapore’s critical position as a key business hub for American companies, we urge both the US and Singapore governments to engage in meaningful dialogue to ensure that trade policies support economic prosperity, supply chain security and a stable business environment,” said Ms Elisa Mallis, chairwoman of the American Chamber of Commerce in Singapore (AmChamSG).

Her comments come after the Trump administration 

imposed on Singapore a “baseline tariff” of 10 per cent

on April 2, purportedly over a trade deficit against Singapore.

The tariff was imposed despite zero tariffs on US imports coming into Singapore under the US-Singapore Free Trade Agreement that came into force in 2004, as well as the existence of a trade surplus in actuality, especially when services are included.

In the light of these factors, Prime Minister Lawrence Wong told Parliament on April 8 that if the tariffs were truly meant to be reciprocal, and meant to target only those that have a bilateral surplus against the US, the tariff for Singapore should be zero.

In her statement, Ms Mallis noted that the US and Singapore share a robust economic relationship underpinned by the free trade agreement between both nations.

“This agreement has significantly boosted bilateral trade and investments and increased prosperity and opportunity in both nations,” she said.

Ms Mallis also noted there is a trade surplus in favour of the US when it comes to Singapore.

In 2023, the goods and services trade totalled more than US$131 billion (S$175 billion), with US exports to Singapore reaching nearly US$80 billion, she said.

There are also close to 6,000 US companies operating in Singapore, many of which use the city-state as their regional hub for Asia-Pacific business activities, she said.

She also said the chamber is forming a trade task force to gather relevant member feedback that will be shared with stakeholders, adding that the chamber looks forward to working with the Government’s task force.

PM Wong in his April 8 speech announced the new task force to address uncertainties following the announcement of new US tariffs, chaired by Deputy Prime Minister Gan Kim Yong, who is also the Trade and Industry Minister.

Ms Mallis said the chamber will continue to keep members updated on trade, tariffs and other issues that impact businesses in line with its mission to represent the voice of American business in Singapore and the region.

“AmChamSG members continue to have confidence in the longstanding US-Singapore relationship and the opportunities for continued economic engagement in the region.

“We support a fair and equitable trade relationship that benefits both the United States and Singapore.”