SINGAPORE, July 24 — The United States has imposed a new 12.5 per cent tariff on about one‑third of Singapore’s domestic exports, citing forced labour concerns.
According to a report by the Straits Times, the Ministry of Trade and Industry (MTI) said the levy took effect at 12.01am Eastern time on July 24.
A notice in the US Federal Register listed Singapore among dozens of economies now facing duties of between 10 and 12.5 per cent.
US Trade Representative Jamieson Greer said, “The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.”
The USTR investigation, which began in March and concluded in July, placed Singapore among 45 economies subject to 12.5 per cent duties.
Ten other trading partners, including Mexico, Britain, Canada and India, face 10 per cent tariffs after adopting forced‑labour restrictions.
Neighbouring Malaysia and several other Asean members were also listed among economies subjected to the new tariffs, underscoring the wider regional impact of Washington’s forced‑labour probe.
Singapore rejected claims of unfair trade practices and said it does not condone forced labour.
MTI stated, “Singapore does not condone the use of forced labour and has a comprehensive enforcement framework and good track record against such illegal practices within our borders.”
The ministry added that forced labour in complex supply chains is a transnational issue requiring international cooperation. It said further details on implementation will be announced later.
Foreign Minister Vivian Balakrishnan told reporters on July 23 that he raised the matter with US Secretary of State Marco Rubio during meetings in Manila.
MTI noted that products already covered by Section 232 tariffs, such as steel, aluminium, copper, automobiles and trucks, are exempt from the new measure.
Energy products, pharmaceuticals, certain electronics, aerospace items, semiconductors and metals used in currency and bullion are also excluded.
The new tariff replaces a 10 per cent global levy imposed earlier this year after the US Supreme Court struck down Trump’s reciprocal tariffs.
Singapore is also under a separate USTR probe into excess manufacturing capacity, which could lead to additional duties.
Singapore Manufacturing Federation president Lennon Tan said the characterisation behind the tariff does not reflect the standards of its members.
“Our members face uncertainty over whether further duties may be layered on,” he said.
Tan added that manufacturers should diversify markets, strengthen supply chain resilience and use Singapore’s free trade agreements to reduce reliance on a single market.
