Oral reply to PQs on Updated Assessment on Impact on Singapore's Economy and Businesses from New 15% Tariffs

Questions:

Mr Saktiandi Supaat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what specific clarifications Singapore is seeking from the US on the scope, product coverage and customs implementation of the temporary tariff imposed under section 122 of the Trade Act of 1974; (b) how Singapore’s exports under the US–Singapore Free Trade Agreement will be treated; and (c) when will the Ministry issue sector-specific guidance to businesses, including re-exporters on compliance and mitigation steps.

Mr Saktiandi Supaat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what quantitative indicators or thresholds such as, export orders, Purchasing Managers' Index (PMI) for new exports, retrenchments in trade-exposed sectors, will trigger additional support measures in response to heightened tariff uncertainty; and (b) whether any measures being studied will be sector-targeted such as, the electronics, precision engineering, logistics sectors rather than broad-based.

Dr Choo Pei Ling: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry can provide an update in its assessment of the impact on Singapore arising from the new 15% tariff imposed on all goods entering the US from 24 February 2026; and (b) whether the Ministry can negotiate for exemptions based on the increasing US goods trade surplus with Singapore

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. 5 to 7 in today’s Order Paper together with the Written Question No. 1212 filed for the 10 March 2026 sitting, as they relate to the US’ new Section 122 tariff? If the MP is satisfied with the response, they may wish to withdraw their questions after this session. 

2.                  On 20 February 2026, the Supreme Court of the United States (SCOTUS) struck down the US’ ‘reciprocal’ tariffs that were imposed on the US’ trading partners under the International Emergency Economic Powers Act (IEEPA). On the same day, the US announced a tariff of 10% under Section 122 of the Trade Act of 1974 on all US imports for 150 days. The US Customs and Border Protection (CBP) started collecting this 10% tariff from 12.01am on 24 February 2026, US time. While US President Donald Trump announced via a Truth Social post on 21 February 2026 that the tariff rate would be raised to 15%, the US has yet to issue an official directive on this increase. 

3.                  The immediate direct impact of these tariff developments on Singapore’s economy is not expected to be significant, given that the current Section 122 tariff of 10% is broadly unchanged from the previous 10% ‘reciprocal’ tariff that had been imposed on Singapore’s exports to the US since April 2025. 

4.                  Those with a greater dependence on the US for final demand and whose exports are covered by the Section 122 tariff, such as the precision engineering cluster and some segments under the general manufacturing cluster, could see a greater impact from any tariff increase. 

5.                  There remains considerable uncertainty. It is unclear if the current 10% Section 122 tariff will be raised to 15%. It is also unclear what the overall tariff landscape will be after the current 150-day timeline. At the same time, we may see sectoral tariffs under Section 232 as well as tariffs imposed under different legal authorities in due course. 

6.                  We will continue to monitor such developments closely and engage our US counterparts to ensure that our economic interests are safeguarded.  

7.                  We will also continue to work with our tripartite and industry partners through the Singapore Economic Resilience Taskforce (SERT) to gather feedback on how businesses and workers are affected. For instance, SERT convened last week to discuss the tariff developments and preliminary sentiments of businesses and workers. 

8.                  The Government is committed to helping our businesses and workers navigate the challenges arising from these tariff developments. In October 2025, SERT launched the Business Adaptation Grant (BizAdapt) to help businesses affected by the tariffs to evaluate the impact, optimise their supply chains, and reconfigure their operations. The Graduate Industry Traineeship (GRIT) was also launched as a temporary scheme to provide traineeships for fresh graduates to gain industry-relevant experience and skills amid economic uncertainty, so that they are better equipped to transition into full-time employment. At Budget 2026, the Prime Minister and Minister for Finance announced that support levels under BizAdapt would be raised from up to 50% to up to 70%. We stand ready to provide further support, as needed.