SINGAPORE: Many Singapore-based pharmaceutical companies might avoid immediate impact from upcoming United States tariff hikes due to existing American investment plans.
Deputy Prime Minister Gan Kim Yong stated these firms are currently clarifying their eligibility for exemptions with US authorities.
“Following the recent announcement, we also reached out to them again and, as I understand, many of them actually already have plans to invest in the US,” he said during a doorstep interview.
Gan, who is also Trade and Industry Minister, explained that the tariffs may not affect exports immediately since companies already plan to build US capacity.
US President Donald Trump announced a 100% tariff on branded pharmaceuticals unless a company constructs a manufacturing plant within the country.
Pharmaceutical exports to the US represent about S$4 billion or 13% of Singapore’s domestic exports to that market.
The government has also contacted furniture sector players after Trump announced 50% tariffs on cabinets and vanities plus 30% on upholstered furniture.
Gan expressed broader concern about the trend of increasing tariffs globally rather than just the specific US measures.
“This is not just the US imposing tariffs; I think, in time to come, other countries will also begin to introduce tariffs to protect their own industries,” he added.
He highlighted longer-term worries about how tariffs could divert investment away from Singapore and the region toward the United States.
“Some of these investments – the resources, the funds – could have been targeted at investing in Singapore and in this region, but now they have to be diverted to the US,” Gan noted.
Discussions between Singapore and the US concerning pharmaceutical and semiconductor issues are currently ongoing. – Bernama
