Deputy Prime Minister Gan Kim Yong addresses the imposition of US tariffs on imports, highlighting the need for Singapore to adapt and explore alternatives. The government will work with businesses and workers to assess the impact and implement support measures if necessary.
Deputy Prime Minister Gan Kim Yong has emphasized Singapore's need to prepare for the impact of increased US tariffs on imports. Speaking to the media on Sunday, February 22, DPM Gan highlighted the volatile global operating environment, describing the situation as very fluid. This follows the US imposing global levies of 15% on imports under Section 122, a rarely used law permitting temporary tariffs for up to 150 days.
The DPM noted that this increase serves as a stark reminder of the current unpredictability and uncertainty facing businesses worldwide. He stated that the government will closely monitor developments to assess its next steps and consider alternatives, including potential exemptions from the tariffs. DPM Gan clarified that the government will continue engaging with US counterparts to seek further clarification on the implementation of the tariffs, recognizing the time limit associated with Section 122 and the potential for future changes.\Addressing the potential impact, DPM Gan, who is also Minister for Trade and Industry, announced that the government and the Singapore Economic Resilience Taskforce (SERT) will collaborate with businesses and workers to evaluate the effects on businesses and employment. He indicated that the new 15% across-the-board tariff is likely to affect Singapore, necessitating preparedness for the repercussions. Should it be deemed necessary, the government is prepared to implement additional measures to support companies, workers, and households. A statement from the Ministry of Trade and Industry (MTI) on Sunday outlined its plan to work with tripartite and industry partners through SERT, providing timely information to businesses and workers while gathering feedback on the challenges they encounter. The MTI also encouraged businesses to utilize available measures, such as the Corporate Income Tax rebate, to manage costs and take advantage of enhanced grant support for schemes like the Market Readiness Assistance grant and the Business Adaptation Grant. This is to help build resilience and adaptability. Furthermore, the government will engage with US counterparts to seek clarification on the processes for tariff refunds. According to US Census Bureau data, the US had a goods trade surplus of US$3.6 billion with Singapore in 2025, which is an increase from the US$1.9 billion surplus in 2024, the MTI reported.\In response to inquiries about Singapore potentially being exempt from tariffs within the next six months, DPM Gan cautioned against such optimism. He underscored the importance of acknowledging the persistent uncertainty and adapting accordingly. According to DPM Gan it would be unproductive to assume that the tariff structure would change anytime soon. He added that negotiating exemptions would be very difficult if the 15% tariff is applied universally. Singapore's strategy involves creating opportunities by exploring avenues such as new markets, higher value-added products, or focusing on sectors where the US might grant tariff exemptions. This approach, as stated by DPM Gan, is crucial for fostering a resilient economy capable of withstanding external shocks. The goal is to navigate the unpredictable economic climate with adaptability and strategic foresight. The government's proactive approach involves a combination of monitoring, consultation, and strategic planning to mitigate the negative impacts and promote long-term economic stability. The emphasis on adaptability and exploration of alternatives underscores Singapore's commitment to maintaining its economic competitiveness in a rapidly evolving global environment
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