Oral reply to PQs on assessment of tariff-impact on Singapore's trade sectors following US' Section 301 investigations

Questions:

Mr Alex Yam: To ask the Deputy Prime Minister and Minister for Trade and Industry in light of the US launching a Section 301 investigation into excess industrial capacity that includes Singapore on the grounds of global semiconductor capacity despite Singapore running a trade deficit with the US (a) what is the Government’s assessment of the basis for Singapore’s inclusion; (b) whether Singapore sectors may face tariffs; and (c) what engagements are underway to safeguard Singapore’s trade interests. 

Mr Saktiandi Supaat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what assessment has the Government made of the potential economic impact on Singapore arising from the US Section 301 investigation into alleged excess industrial capacity among several economies including Singapore; and (b) whether this could affect key export sectors such as electronics, semiconductors and precision engineering. 

Mr Yip Hon Weng: To ask the Deputy Prime Minister and Minister for Trade and Industry following the US Section 301 investigation into Singapore’s semiconductor capacity (a) how is the Ministry addressing US concerns and highlighting Singapore’s bilateral trade deficit with the US; and (b) what strategies are being deployed to diversify Singapore’s trade relations and mitigate the economic impact of potential US punitive tariffs. 

Mr Mark Lee: To ask the Deputy Prime Minister and Minister for Trade and Industry in light of the expanding Section 301 investigations by the US into forced labour risks across global supply chains (a) how does the Government assess potential implications for Singapore-based companies and our foreign workforce framework; (b) whether domestic sectors reliant on migrant workers may face increased scrutiny; and (c) what guidance will be provided to local companies for compliance and supply-chain due diligence. 

Mr Mark Lee: To ask the Deputy Prime Minister and Minister for Trade and Industry in light of the US initiating Section 301 investigations into structural excess industrial capacity in manufacturing sectors across several economies including Singapore (a) what is the Government’s assessment of potential implications for Singapore’s trade-oriented industries; (b) which sectors may face heightened scrutiny or trade risks; and (c) what guidance will be provided to help businesses prepare for possible actions arising from such investigations. 

Mr Dennis Tan Lip Fong: To ask the Deputy Prime Minister and Minister for Trade and Industry what progress has been made in consultations with the United States Trade Representative (USTR) to correct the significant discrepancy between the reported US$27 billion bilateral trade surplus in the USTR Federal Register Notice and the US$27 billion deficit recorded by the US Bureau of Economic Analysis.

Oral Answer (to be attributed to Minister of State for Trade and Industry Gan Siow Huang)

1.                  Mr Speaker, may I have your permission to answer Oral Questions No. 64 to 69, Written Questions No. 67 and 68 in today's Order Paper, and the Oral Question No. 1802 filed by Honorable Member Mr Victor Lye for the 8 April sitting, as they all relate to the US' Section 301 investigations? 

2.                  On 11 and 12 March 2026, the Office of the United States Trade Representative initiated two investigations under Section 301 of the Trade Act of 1974. The first investigation involves 16 economies for structural excess capacity and production in certain manufacturing sectors, while the second investigation involves 60 economies for not adopting or effectively enforcing a ban on the importation of goods produced wholly or in part with forced labour. Singapore, and all the other 15 economies involved in the first investigation are subject to both investigations. 

3.                  The US Trade Representative’s Federal Register Notice on the investigation into structural excess capacity had highlighted that Singapore enjoyed a bilateral trade surplus with the US in both goods and services amounting to US$27 billion in 2024. The Ministry of Trade and Industry (MTI) has clarified that it was the US which ran a trade surplus of US$27 billion with Singapore in 2024. The US Trade Representative has since removed this inaccurate statement from its Federal Register Notice. 

4.                  As the US Trade Representative’s investigations are ongoing, we should not speculate on the basis for, or outcomes of, these investigations. It would also be premature to comment on the potential impact on our export sectors or workers at this juncture, as the details are not yet available. 

5.                  The Singapore Government will continue to engage the US constructively in the course of these investigations and will provide further updates when ready. 

6.                  And in the meantime, the Section 122 tariff of 10% imposed on Singapore’s exports to the US since 24 February 2026 remains unchanged. 

7.                  The Singapore Economic Resilience Taskforce will continue to gather feedback on how businesses and workers are affected, and address specific concerns as they arise. The Government will also strengthen resilience of our trade-exposed sectors by helping companies diversify the markets that they serve, and deepen Singapore’s trade and investment linkages with like-minded partners.