Singapore still subject to 10% US tariff as no official word yet on higher 15% rate: Gan Siow Huang

SINGAPORE – Goods imported from Singapore into the US still face a 10 per cent tariff because the US authorities have not yet officially raised the rate to 15 per cent, as President Donald Trump announced in a social media post in February, said Minister of State for Trade and Industry Gan Siow Huang.

The confusion over tariff rates follows a US Supreme Court decision on Feb 20 to strike down so-called reciprocal tariffs under the International Emergency Economic Powers Act, ruling that Mr Trump had overstepped his constitutional authority.

But the White House quickly moved to issue an executive order imposing a 10 per cent global tariff under a different law – Section 122 of the Trade Act. Mr Trump then announced in a Truth Social post on Feb 21 that the tariff rate would be raised to 15 per cent.

Ms Gan, who is also Minister of State for Foreign Affairs, told Parliament on March 5: “The US has yet to issue an official directive on this increase.”

She said the immediate impact on Singapore’s economy from the latest tariff development is not expected to be significant, given that the current Section 122 tariff of 10 per cent is broadly unchanged from the previous 10 per cent reciprocal tariff that was imposed in April 2025.

However, segments within Singapore’s manufacturing sector that are more dependent on US final demand and whose exports are covered by Section 122 could see a greater impact.

These include precision engineering and some clusters under general manufacturing, Ms Gan said in response to oral questions by Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) and Dr Choo Pei Ling (Chua Chu Kang GRC) on March 5 and a written question filed by Nominated MP Terence Ho for a future Parliament sitting.

Ms Gan said there is “considerable” uncertainty regarding the US tariffs under Section 122, which can last for only 150 days unless Congress approves an extension.

US Treasury Secretary Scott Bessent said in a March 4 interview on CNBC that the 15 per cent global tariff will likely be implemented this week.

Ms Gan said: “It is unclear if the current 10 per cent Section 122 tariff will be raised to 15 per cent. It is also unclear what the overall tariff landscape will be after the current 150-day timeline.”

At the same time, Singapore may be subject to US sectoral tariffs, for example under Section 232, as well as tariffs imposed under other laws in due course. So far, pharmaceuticals and semiconductors, two of Singapore’s top exports, remain exempt from such tariffs.

“We will continue to monitor such developments closely and engage our US counterparts to ensure that our economic interests are safeguarded,” she said, adding that the Government will also continue to work with tripartite and industry partners through the Singapore Economic Resilience Taskforce.

“The Government is committed to helping our businesses and workers navigate the changes arising from these tariff developments.”

She cited the Business Adaptation Grant as an example of the initiatives the Government has introduced so far. The grant helps enterprises adapt their business operations and strengthen supply chain resilience through advisory and reconfiguration support.

A GRaduate Industry Traineeships Programme was also launched to offer traineeship opportunities to fresh graduates for a period of three to six months across various sectors, helping them better transition into full-time employment.

Ms Gan said the Singapore Business Federation (SBF) is also doing its part in partnership with the Government to advise companies.

SBF has published a playbook to guide companies on key actions to take, such as assessing the impact of tariffs and trade disruptions through risk mapping, reconfiguring their supply chains and planning ahead by digitalising and innovating to build long-term resilience.

The Government is ready to roll out further measures to support businesses and workers if needed, said Ms Gan.

She said the Government is also making efforts to strengthen, deepen and diversify trade links with key trading partners and to pursue closer trade relations with emerging markets, such as those in Latin America, South Asia, the Middle East and Africa.

“We encourage businesses to continue tapping on our 29 free trade agreements,” she added.