Singapore is likely to be affected by a new 15 per cent United States tariff on all imports, Deputy Prime Minister Gan Kim Yong said on Feb 22. The announcement came after United States President Donald Trump raised the tariff rate from 10 per cent to 15 per cent. Details on how the new tariff will be implemented have not yet been released by Washington.
Speaking at One Punggol Community Centre, Mr Gan said, “It is important for us to continue to remind ourselves … we need to prepare for the long term, and this is the new world that we are facing.” He also stressed that Singapore’s economic strategy review will play a key role during this period. “Our economic strategy review plays a very important part in charting the path forward to strengthen our competitiveness and deepen our resilience, and this is an important part of the work,” he added.
Legal Moves Behind the Tariff
Earlier, the US Supreme Court struck down the president’s earlier “Liberation Day” tariffs, ruling that the International Emergency Economic Powers Act did not give him authority to impose them. In response, the White House invoked Section 122 of the Trade Act of 1974 to introduce a 10 per cent global tariff for 150 days from Feb 24. Mr Trump later announced on Truth Social that the rate would be increased to 15 per cent. Under Section 122, temporary tariffs of up to 15 per cent can be imposed for a maximum of 150 days.
Certain products are exempted from the new tariffs. These include energy products, pharmaceuticals and active pharmaceutical ingredients, selected electronics and aerospace items, and some metals used in currency and bullion. Semiconductors and pharmaceuticals may instead fall under separate Section 232 tariffs, which have not yet been implemented.
Impact on Singapore and Global Trade
The Ministry of Trade and Industry said it is closely monitoring the situation and will seek clarification from United States authorities, including whether tariff refund processes will be available. The ministry also noted that according to United States Census Bureau data, the United States recorded a goods trade surplus of US$3.6 billion with Singapore in 2025, higher than the US$1.9 billion surplus in 2024.
On the impact of the tariff, Mr Gan said much depends on how it is applied and how other countries respond. “But I would say that if the tariffs applied across the board, then it does not affect the relative competitiveness, and therefore, I think (there will still be) opportunities for Singapore to be able to continue to do business with the US.”
However, he also warned, “But 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 … and therefore, I think there will be headwinds going ahead. So this is something that we have to always bear in mind.”
Preparing for Uncertainty
Mr Gan said uncertainty remains a key concern, especially with the 150 day time limit under Section 122 and possible changes during that period. He said, “It may not be exactly what it looks like today, may be some other shapes or forms, but I think it will be unproductive for us to assume that we are going to get out of this tariff structure anytime soon … better for us to accept the fact that we are going to have to live with this uncertain world going forward.”
If the 15 per cent tariff is applied across the board, it would be very difficult to negotiate for exemptions, he said. “So it is also important for us to think about what are our alternatives, how we can look for new markets, how we can go for higher value-added products, or whether we can focus on some of the sectors that the US will need and would … give exemption on this tariff.”
The Ministry of Trade and Industry added that the government will work with tripartite and industry partners through the Singapore Economic Resilience Taskforce to support businesses and workers. Measures introduced during Budget 2026, including a corporate income tax rebate and enhanced support for overseas expansion, were also highlighted. On whether the tariff may affect Singapore’s gross domestic product growth forecast of 2 per cent to 4 per cent this year, Mr Gan said the government will review and revise the forecast if necessary.
