Singapore is actively opposing potential new US tariffs of 10% to 12.5% on its exports, with Foreign Affairs Minister Vivian Balakrishnan stating that there is “no technical or economic basis” for such measures. These proposed tariffs arise from a US investigation under Section 301 of the Trade Act of 1974, which examines trading partners' efforts to prevent the import of goods made with forced labor. Balakrishnan emphasized Singapore's growing trade surplus with the US, arguing that it makes tariffs economically unfounded. He conveyed Singapore's position to US Secretary of State Marco Rubio during a meeting on the sidelines of the 59th ASEAN Foreign Ministers’ Meeting in Manila.
Singapore rejects the US Trade Representative's (USTR) findings that it has failed to effectively enforce a ban on imports of goods produced with forced labor. The Ministry of Trade and Industry (MTI) has asserted that Singapore does not condone forced labor and has a comprehensive regulatory framework to combat such illegal practices. The MTI also stated that there is no evidence linking Singapore's supply chains to goods produced with forced labor. These proposed tariffs, which could affect about one-third of Singapore's $27 billion worth of non-oil domestic exports to the US (Singapore's largest market for these exports), aim to replace existing US reciprocal tariffs that were due to expire on July 24.
Balakrishnan candidly acknowledged that the US administration might be pursuing these tariffs for “its own domestic political reasons” and expressed concern that Singapore could become “collateral damage” in a broader US strategy to raise tariffs with trade partners. He highlighted the need for careful navigation to ensure Singapore is not mistakenly targeted. The ongoing uncertainty surrounding US tariff policies has also reinforced ASEAN's necessity to deepen integration and enhance its resilience. The US was Singapore’s fourth-largest trading partner in 2025, with total bilateral trade amounting to S$139.2 billion, and Singapore was the third-largest Asian investor in the US in 2024, with an investment stock of $71.1 billion.
