Media statement on the US' latest implementation of Section 122 tariffs

We note that the White House has issued an order, on 20 February 2026, to impose a global tariff of 10% under Section 122^[1] of the Trade Act of 1974 on all imports into the US for 150 days, with effect from 24 February 2026, 12.01am. On 21 February 2026, US President Donald Trump announced through a Truth Social post that the tariff rate will be raised to 15%. 

^{[1] Section 122 permits the US President to impose temporary import tariffs or quotas to address serious balance-of-payments deficits, at rates not exceeding 15%, for a maximum of 150 days.} 

Certain types of goods are exempted from the Section 122 tariffs, such as energy and energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics, certain aerospace products and metals used in currency and bullion, amongst others. In addition, semiconductors and pharmaceuticals are not subject to the Section 122 tariffs, as they may be the subject of Section 232 tariffs that have not yet been imposed. 

The Singapore Government is monitoring the situation closely and will engage our US counterparts to seek clarity on the implementation of the new Section 122 tariffs and processes for tariff refunds. According to the US Census Bureau data, the US ran a goods trade surplus of US$3.6B with Singapore in 2025, higher than the surplus of US$1.9B in 2024. 

We will also work with our tripartite and industry partners through the Singapore Economic Resilience Taskforce (SERT) to provide timely information to our businesses and workers and gather feedback on how they are affected. To build up resilience and adaptability, we encourage businesses to tap on the various measures available. These include measures recently announced at Budget 2026 – a Corporate Income Tax rebate to help manage costs, and enhanced support for companies to expand overseas. For example, enhanced grant support levels for schemes such as the Market Readiness Assistance grant and the Business Adaptation Grant, which was introduced to help companies navigate the tariff environment, as well as higher loan limits under the Enterprise Financing Scheme for Trade and SME Fixed Asset Loans.