Singapore will continue to face a 10% tariff on exports to the United States, confirmed the Ministry of Trade and Industry (MTI) on 1 August. This confirmation follows a new executive order signed by US President Donald Trump on 31 July, which revised import tariff rates for several of America’s key trading partners.
Although the latest executive order did not name Singapore directly, it reaffirmed the continuation of baseline tariffs for countries with which the US holds a trade surplus. According to Trump’s earlier “Liberation Day” announcement on 2 April, a default 10% import duty applies to such economies.
Singapore, being one of the few Asian economies with a consistent trade surplus with the US, has found itself grouped under this default bracket once again.
US Tightens Tariffs Across Asia-Pacific: Singapore Fares Better Than Neighbours
While Singapore’s 10% rate remains unchanged, other Asian countries have been hit harder in this updated policy. Based on the revised tariff structure:
- South Korea and Japan now face a 15% import tariff
- Malaysia, Indonesia, and the Philippines are subject to 19%
- Taiwan has been levied with a 20% tariff
- India tops the list with a significant 25% import duty
The Singapore Ministry of Trade and Industry (MTI) told local media that they have “confirmed this understanding with the Office of the United States Trade Representative” and are continuing to monitor the situation closely. “We will seek further clarification from our U.S. counterparts as necessary,” said an MTI spokesperson.
Impact on Singapore’s Export Sector and Global Trade Relations
This development may have long-term implications for Singapore’s export competitiveness and its positioning in the global supply chain. Though the 10% tariff is not new, its continued enforcement amid increasing rates for regional peers could see trade diversion and altered shipping routes, especially for sectors like electronics, precision engineering, and petrochemicals — all of which are key to Singapore’s GDP.
Trade analysts have pointed out that while Singapore’s tariff rate is lower than its neighbours’, the country still faces headwinds from a more protectionist US stance. “These tariffs, regardless of size, are signals of a shifting US trade strategy, especially in election years,” said one regional economist. “Singapore, despite its open economy and close diplomatic ties with Washington, is not spared.”
Singapore’s Free Trade Agreements (FTAs) with the US are currently limited, which leaves it more vulnerable to unilateral policy changes such as these. While Singapore typically champions multilateralism and rule-based trading systems, the current environment is seeing a pivot towards economic nationalism in key markets.
What’s Next for Businesses and Policymakers?
With the US-Singapore trade relationship under increased scrutiny, local exporters are advised to explore diversification strategies. Some firms may look to shift production bases, while others may renegotiate pricing or seek markets less exposed to US tariffs.
At the same time, Singaporean policymakers are likely to double down on regional partnerships, including the ASEAN Free Trade Area (AFTA) and Regional Comprehensive Economic Partnership (RCEP), to strengthen alternative trade flows and mitigate risk from future disruptions.
For now, while Singapore has escaped the steep hikes faced by regional peers, the ongoing uncertainty in global trade policy continues to be a concern for businesses and investors alike.