SINGAPORE – Singapore’s government plans to press U.S. officials for details on a looming 15 percent tariff on all imports set to hit from February 24, Deputy Prime Minister Gan Kim Yong said, warning of broad economic ripple effects despite the city-state’s trade surplus with America.
The announcement follows a pivotal U.S. Supreme Court ruling on February 20, where a 6-3 majority struck down President Donald Trump’s bid to enact sweeping tariffs via a 1977 emergency powers law, deeming it an overreach of executive authority. In response, the White House pivoted to Section 122 of the 1974 Trade Act, initially ordering a 10 percent levy on global imports for 150 days starting February 24 at 12:01 a.m. Trump escalated it to 15 percent via a Truth Social post on February 21, the maximum allowed under the provision, aimed at tackling balance-of-payments issues.
“If applied across the board, negotiating exemptions will be tough,” Gan told reporters after a briefing. “Uncertainty is the real challenge – we don’t know the full implementation details.” He flagged likely impacts on Singapore, though the nation holds a $3.6 billion U.S. goods trade surplus in 2025, up from $1.9 billion in 2024 per U.S. Census data.
Singapore’s Ministry of Trade and Industry (MTI) is probing refund processes and exemptions for items like energy products, pharmaceuticals, select electronics, aerospace goods, and metals for currency. Semiconductors and drugs may dodge these under separate Section 232 rules, which remain unimposed.
Holding its 2026 growth forecast at 2-4 percent, Gan stressed preparedness via the Singapore Economic Resilience Taskforce – which he chairs since April 2025. It will rally businesses, workers, and tripartite partners for feedback and support, drawing on Budget 2026 measures like corporate tax rebates, overseas expansion aid, and household aid, due for parliamentary debate from February 24.
“Budget tools should cushion the immediate blow, but we’ll roll out more if needed,” Gan said. He urged firms to diversify markets, upscale products, and hunt exemptions, noting blanket tariffs might preserve Singapore’s edge. Still, he cautioned: “Higher global costs will dampen investment, trade, and demand – headwinds ahead.”MTI echoed calls for resilience, highlighting Budget perks to navigate volatility.