[SINGAPORE] The Republic, among other economies, will face a new 12.5 per cent tariff on its exports to the US after the USTR investigation, which started in March and concluded in July.
A probe by the Office of the US Trade Representative (USTR) concluded that those economies failed to adopt and effectively enforce a ban on the importation of goods produced with forced labour.
Singapore previously rejected the claims that it engages in unfair trade practices in April, including the use of forced labour in supply chains. It also said that it does not condone such practices.
About one-third of Singapore’s exports to the US will be affected by this new tariff, which goes into effect at 12.01 pm in Singapore on Friday (Jul 24).
“The United States has had a forced labour import ban for nearly a century, and rigorously enforces it,” said US Trade Representative Jamieson Greer in a statement. “It’s well past time for our trading partners to do the same.”
The Business Times has reached out to the Ministry of Trade and Industry (MTI) for further comment.
Goods from 19 other economies will instead be subject to 10 per cent tariffs. This group includes countries that have recently imposed forced labour restrictions or made commitments to do so, as well as those that have a prohibition but have not effectively enforced it.
These include India, the UK, Mexico and Canada. That brings it to a total of 60 economies that will be subject to new tariffs over forced labour concerns, as announced on Friday.
Singapore Foreign Minister Vivian Balakrishnan on Thursday said that he raised the matter during a bilateral meeting with US Secretary of State Marco Rubio at the Asean Foreign Ministers’ Meeting in Manila. Speaking to reporters, he said “there really is no technical or economic basis to impose tariffs upon us.”
In June, MTI said some exports will remain exempted. These include energy and energy products, pharmaceuticals and pharmaceutical ingredients. These are on top of exemptions for some electronics, certain aerospace products, semiconductors, as well as metals used in currency and bullion.
The USTR investigation was part of a series of probes initiated to impose new and harsher tariffs after the US Supreme Court in February struck down US President Donald Trump’s 2025 reciprocal tariffs. In response, he immediately imposed a 10 per cent global levy under Section 122, which expired in July.
Singapore and 15 other economies are also subject to more USTR investigations under Section 301 regarding acts, policies and practices that relate to structural excess capacity and production in manufacturing.
It is not yet clear when the results of these investigations will be released and if any penalties in the form of tariffs will be added to the 12.5 per cent levy announced on Friday.
