SINGAPORE: Singapore is taking a cautious approach to any concessions that could secure a lower tariff from the United States, with Deputy Prime Minister Gan Kim Yong saying that the government must first assess the significant costs and wider trade implications of measures sought by Washington.
In a written reply to questions from members of parliament on whether Singapore could negotiate a lower tariff, Mr Gan, who is also the Minister for Trade and Industry (Trade), said that Singapore would continue engaging the US Trade Representative (USTR), but he stressed that any response must be “considered carefully”.
The US imposed tariffs of between 10 per cent and 12.5 per cent on 60 economies covered by its forced labour investigation.Â
Singapore was hit with the highest rate because it does not have a law prohibiting imports produced with forced labour, or have an Agreement of Reciprocal Trade with the US committing it to introduce one.Â
MP Yip Hong Weng (PAP-Yio Chu Kang) had asked Mr Gan about the impact of the tariff, and whether the government would introduce more measures to help affected exporters.
Mr Gan said that about one-third of Singapore’s domestic exports to the US, worth around S$9.5 billion (US$7.4 billion) yearly, are affected by the new tariff. These include optical instruments and chemical products.
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