SINGAPORE \u2013 The Government will engage its US counterparts to seek clarity on the implementation of a potential new 15 per cent tariff on all goods entering the US from Feb 24, said Deputy Prime Minister Gan Kim Yong.<\/p>\n
He noted that if the 15 per cent minimum tariff is applied across the board, it would be very difficult for Singapore to negotiate for exemptions.<\/p>\n
\u201cThe key word really is uncertainty, because it\u2019s not clear how it\u2019s going to be implemented,\u201d\u00a0DPM Gan told reporters at a briefing on Feb 22, held after the US Supreme Court on Feb 20 rejected US President Donald Trump\u2019s authority to impose tariffs<\/a> under a 1977 economic emergency powers law.<\/p>\n In a landmark 6-3 decision,\u00a0the Supreme Court ruled that Mr Trump had overstepped his constitutional authority\u00a0by unilaterally imposing sweeping global tariffs under a law meant for use in national emergencies.<\/p>\n In response, the White House had initially issued an order on Feb 20 to impose a 10 per cent global tariff under Section 122 of the Trade Act of 1974 on all imports into the US for 150 days, with effect from Feb 24, 12.01am.<\/p>\n However, Mr Trump on Feb 21 announced in a Truth Social post that the tariff rate would be raised to 15 per cent.<\/p>\n DPM Gan said: \u201cIn all likelihood, this new 15 per cent across-the-board tariff will be applicable to Singapore. We need to be prepared for the impact.\u201d<\/p>\n For now, despite the possibility of higher tariffs, Singapore is maintaining its economic growth forecast at 2 per cent to 4 per cent, he added.<\/p>\n A spokesperson for the Ministry of Trade and Industry (MTI) said on Feb 22 that Singapore will also seek further details on the process for potential tariff refunds.<\/p>\n \u201cThe Singapore Government is monitoring the situation closely and will engage our US counterparts to seek clarity on the implementation of the new Section 122 tariffs and processes for tariff refunds,\u201d the spokesperson said.<\/p>\n Section 122 permits the US president to impose temporary import tariffs or quotas to address serious balance-of-payments deficits, at rates not exceeding 15 per cent, for a maximum of 150 days.<\/p>\n DPM Gan said: \u201cWhat happens after the time limit is something we will have to observe.\u201d<\/p>\n According to US Census Bureau data, the US ran a goods trade surplus of US$3.6 billion (S$4.6 billion) with Singapore in 2025, up from US$1.9 billion in 2024.<\/p>\n Certain types of goods are exempt from the Section 122 tariffs, such as energy and energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics, certain aerospace products and metals used in currency and bullion, among others, MTI noted.<\/p>\n Semiconductors and pharmaceuticals are not subject to the Section 122 tariffs as they may fall under Section 232 tariffs that have not yet been imposed.<\/p>\n DPM Gan said that the Government will work with its tripartite and industry partners through the Singapore Economic Resilience Taskforce to provide timely information to businesses and workers and gather feedback on how they are affected.<\/p>\n He said that,\u00a0for now, the measures announced in Budget 2026 are sufficient for local businesses to weather the immediate impact.<\/p>\n \u201cBut it is important for us to continue to help them navigate through this uncertainty and volatility,\u201d he added.<\/p>\n Budget 2026, which will be debated in Parliament from Feb 24, also includes various measures to help workers and households alongside support for businesses.<\/p>\n DPM Gan said: \u201cIf need be, and if necessary, we are prepared to roll out more measures, and we will continue to monitor the situation.\u201d<\/p>\n The task force, launched in April 2025, helps businesses and workers navigate the immediate economic challenges posed by US tariffs and is chaired by DPM Gan.<\/p>\n \u201cTo build up resilience and adaptability, we encourage businesses to tap into the various measures available,\u201d said MTI.<\/p>\n \u201cThese include measures recently announced at Budget 2026, such as a corporate income tax rebate to help manage costs, and enhanced support for companies to expand overseas.\u201d<\/p>\n Nevertheless, DPM Gan added that it is important for Singapore businesses to keep their options open and consider alternatives.<\/p>\n He said companies need to explore new markets, move into higher value-added products and identify sectors where the US may have to grant tariff exemptions.<\/p>\n He also said that if the tariffs are applied across the board, they may not affect Singapore\u2019s relative competitiveness, and there will still be opportunities for the country to continue doing business with the US.<\/p>\n \u201cBut at the end of the day, tariffs also mean higher costs globally. And with higher costs, it will slow down economic investments. It will slow down trade, it will slow down demand,\u201d he added.<\/p>\n \u201cThere will be headwinds going ahead.\u201d<\/p>\n Source: The Straits Times \u00a9 SPH Media Limited. Permission required for reproduction<\/a><\/p>\n