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SINGAPORE \u2013 About\u00a0one-third of Singapore\u2019s domestic exports to the US are now subject to a new 12.5 per cent levy aimed at rebuilding US President Donald Trump\u2019s tariff regime after it was undermined by a court decision earlier in 2026.<\/p>\n
The Republic\u2019s Ministry of Trade and Industry (MTI) said the new tariff took effect at 12.01am Eastern time on July 24.<\/p>\n
A US Federal Register notice published on July 23 listed the Republic among dozens of other economies that now face duties of between 10 per cent and 12.5 per cent<\/span><\/a> following a probe by the Office of the US Trade Representative (USTR) into forced labour concerns.<\/p>\n Announcing the new levy, US Trade Representative Jamieson Greer said: \u201cThe United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it\u2019s well past time for our trading partners to do the same.\u201d<\/p>\n The USTR investigation \u2013 which started in March and concluded in July \u2013 placed Singapore among 45 economies that will face 12.5 per cent duties, claiming they have failed to both adopt and effectively enforce prohibitions on trade in goods produced with forced labour.<\/p>\n Goods from some 10 trading partners deemed to have adopted forced-labour restrictions will be subject to 10 per cent tariffs, including Mexico, Britain, Canada and India.\u00a0<\/p>\n Goods\u00a0from Japan, Switzerland and South Korea will also be taxed at 12.5 per cent, but in a way that complies with the trade agreements they reached with the US.<\/p>\n Singapore has rejected suggestions that it engages in unfair trade practices, including the use of forced labour in supply chains, and has told the US that it does not condone such practices.<\/p>\n On July 24, MTI said it will continue to engage the USTR to explore options on this matter. Further details on how the tariff will be implemented will also be announced in due course, it added.<\/p>\n \u201cSingapore does not condone the use of forced labour and has a comprehensive enforcement framework and good track record against such illegal practices within our borders,\u201d MTI said in a statement.<\/p>\n The ministry noted that forced labour in complex and multi-tiered international supply chains is a transnational issue that requires international cooperation and is most effectively addressed at source.<\/p>\n \u201cSingapore is a major trading hub. As such, any trade restriction, including a prohibition on goods produced with forced labour, would need to be carefully considered, which we will continue to do in close consultation with the Singapore Economic Resilience Taskforce and the business community.\u201d<\/p>\n Foreign Minister Vivian Balakrishnan also told reporters on July 23, after wrapping up a week of meetings at the ASEAN Foreign Ministers\u2019 Meeting in Manila, that he had raised the matter during a bilateral meeting with US Secretary of State Marco Rubio.<\/span><\/a><\/p>\n MTI said on July 24 that products subject to Section 232 tariffs \u2013 such as primary metals (steel, aluminium and copper), downstream derivative products, and specific strategic goods such as automobiles, trucks, and wood products \u2013 are exempted from the new tariff measure.<\/p>\n Some exports will also remain exempt, such as energy and energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics, certain aerospace products, semiconductors, and metals used in currency and bullion.<\/p>\n According to a presidential memorandum issued by the White House, goods already facing Trump\u2019s sector-specific tariffs and fertilisers will be exempt too, alongside goods covered by the US-Mexico-Canada free trade pact.<\/p>\n The new tariff is part of a series of measures initiated to impose new and harsher tariffs after the US Supreme Court in February struck down the legal basis for Trump\u2019s signature reciprocal tariffs, imposed in 2025. <\/p>\n