SINGAPORE: Pharmaceutical companies in Singapore are urgently seeking clarification on potential exemptions from steep new United States tariffs.
Deputy Prime Minister Gan Kim Yong revealed that Singapore exports approximately S$4 billion (US$3.10 billion) worth of pharmaceutical products to the US annually.
He noted that most of these exports consist of branded drugs now facing a 100% tariff unless manufacturers establish a US presence.
This development poses a significant concern as pharmaceuticals constitute about 13% of all Singaporean exports to the American market.
Gan expressed optimism that many Singapore-based pharmaceutical firms may qualify for exemptions due to existing US expansion plans.
He confirmed that trade negotiations with the US are actively continuing for both the pharmaceutical and semiconductor sectors.
“Ultimately, we hope to have an arrangement to allow us to remain competitive in the US market,” Gan told reporters.
He indicated that the specific tariff rate, whether 15% or another figure, remains a key point of negotiation.
Singaporean exports to the US currently face a 10% baseline tariff despite a free trade agreement dating back to 2004.
Broader sectoral tariffs could adversely impact demand for key Singaporean products like semiconductors and consumer electronics.
The effective US tariff rate on Singapore’s exports increased to 7.8% in July from 6.8% in April following steel and aluminium tariff hikes. – Reuters
