Impact of US Tariffs on Singapore Companies and Economy, Update on Negotiations and Support for Key Sectors
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the impact of 2025 United States tariffs on Singapore's economy and support for key sectors, as raised by Mr Saktiandi Supaat. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong stated that domestic exports to the US declined by 28% following the implementation of baseline and sectoral tariffs. Despite a 4.3% growth in the first half of 2025, the full-year GDP forecast remains at 1.5% to 2.5% due to moderating global demand. To assist companies, the Singapore Economic Resilience Taskforce introduced the Business Adaptation Grant for supply chain reconfiguration and the GRaduate Industry Traineeships programme for fresh graduates. The Government is closely monitoring potential new tariffs on pharmaceuticals and semiconductors and remains prepared to provide further targeted assistance to affected industries.
Transcript
54 Mr Saktiandi Supaat asked the Deputy Prime Minister and Minister for Trade and Industry (a) what measurable impact has the 2025 tariffs announced by the US had on Singapore companies and the Singapore economy so far; (b) what is the latest update on negotiations with the US, whether on industry-specific measures or otherwise; and (d) what measures are being implemented to support key sectors such as pharmaceuticals and electronics.
Mr Gan Kim Yong: Singapore is currently subject to a United States (US) baseline tariff rate of 10%, which was announced on 2 April 2025 and took effect on 9 April 2025 (eastern daylight time). The US has also imposed section 232 sectoral tariffs on automotives at 25%; steel and aluminium at 50%; and copper at 50%, which apply to most economies, including Singapore.
There are signs that these tariffs have partly affected our domestic exports, with our domestic exports to the US declining by 28% year-on-year between April and August 2025.
Notwithstanding this, Singapore's economy held up in the first half of 2025, growing by 4.3% year-on-year, on the back of a temporary boost from front-loading activities in the region, ahead of the implementation of tariff measures by the US. Singapore's gross domestic product (GDP) growth for 2025 is forecast to range from 1.5% to 2.5%.
The Ministry of Trade and Industry (MTI) expects global growth and hence Singapore's GDP growth to moderate in the second half of 2025 as the temporary boost from front-loading activities dissipates and the US' tariffs on its trading partners take effect. There also remains significant uncertainty in the global economy, including the possibility that section 232 sectoral tariffs on additional goods, such as pharmaceuticals and semiconductors, could be announced soon. MTI will continue to monitor developments closely.
The Singapore Economic Resilience Taskforce (SERT) will support businesses and workers in navigating the current uncertainties and challenges, and to plan ahead to secure our long-term economic future. SERT had announced the Business Adaptation Grant to support enterprises in evaluating the impact of tariffs, supply chain optimisation and reconfiguration for a time-bound period of two years. In consultation with tripartite partners under SERT, the GRaduate Industry Traineeships programme will also be launched to support fresh graduates in gaining industry-relevant experience and skills and facilitate their transition into full-time employment. We are closely assessing the situation and stand ready to provide further support, including to companies in key sectors, as needed.