[SINGAPORE] Singapore has defended its “good track record” of tackling illegal labour practices after the US slapped a new 12.5 per cent tariff on its exports, following an investigation into goods produced with forced labour.
In a notice published on Jul 23 (US Eastern time), the Office of the US Trade Representative (USTR) said its probe, which began in May and concluded in July, had found Singapore to be among 60 economies that had failed to adopt and effectively enforce a ban on the importation of such items.
Responding to the probe’s findings on Friday (Jul 24), the Ministry of Trade and Industry (MTI) stated that Singapore does not condone the use of forced labour. The country has “a comprehensive enforcement framework and good track record against such illegal practices within our borders,” it said.
“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,” MTI said. It added that Singapore would continue working with the international community to tackle the issue.
MTI noted that the newly imposed tariff will affect about one-third of Singapore’s domestic exports to the US. It said that 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 shared when ready,” the ministry added in its statement.
Widespread tariffs
“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.”
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”.
MTI on Friday confirmed that 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 remains committed to upholding high labour standards globally and working with the international community, including the International Labour Organization, to develop measures that address the issue of goods produced with forced labour,” MTI said.
The ministry added that any trade restriction, including a prohibition on goods produced with forced labour, would “need to be carefully considered” in close consultation with the Singapore Economic Resilience Taskforce and the business community.
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.
With assistance from Deon Loke
