Transcript of Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong’s doorstop on US tariff developments

As all of you are aware, the United States announced yesterday a new set of tariffs, which will take effect on 1 October. This new set includes 100% tariff on pharmaceuticals, pharmaceutical products. This is of significant concern to Singapore. This tariff also provides that there will be an exemption if a company is building a manufacturing plant in America. And because of the new tariff, we have been engaging with our pharmaceutical companies. In fact, even before the announcement, we have been talking to them because we know that pharmaceutical tariffs are impending. So, we have been talking to them, engaging them to better understand their concerns and the situation with regard to their exports to the US.

Recently, following the announcement, we reached out to them again. And as I understand, many of them actually already have plans to invest in the US to build new capacity, so the tariffs may not have immediate impact on their exports, given that they already have plans to build capacity in the United States.

In the meantime, they are also continuing to clarify with the US Administration to better understand the conditions and the criteria, and to confirm whether they will be eligible for tariff exemption with the plans for the plants that are in place. I think this will take some time. The pharmaceutical companies are in the process of clarifying with the US Administration in this regard. And for us, it is important because our pharmaceutical exports to the US amount to about S$4 billion, and this is about 13% of our domestic exports to the US, and about 19% of our overall pharmaceutical domestic exports. So, it is an important component of our trade.

Beyond pharmaceuticals, the US has also imposed tariffs on several other items, including kitchen cabinets, bathroom vanities, as well as upholstered furniture. We are also reaching out to the companies which are involved in exporting these items to the US to better understand the impact on them and to see how we can lean forward to support them and to help them, if necessary.

And as you are aware, the SERT Taskforce has announced several initiatives to help companies adjust to this new environment. One of them is the Business Adaptation Grant. More details will be announced over the next couple of weeks. This scheme will be able to help many of the companies affected by the new tariffs, to adjust their supply chains, to reconfigure their production base, in order to be able to manage the impact of the tariff. We are prepared to do more, if necessary, to help companies weather this transition.

At the same time, we have also announced a GRIT (GRaduate Industry Traineeships) programme. This will help to also provide more opportunities for our fresh graduates in view of the uncertainty and volatility going forward.

On a bilateral basis, we are continuing our discussions with the US Administration with regard to pharmaceuticals and semiconductors. My last meeting with Secretary Lutnick was in August - 19 August - and following the meeting, our officials have been in touch on both sides to work out the details and to exchange information and understanding and documentation. But I think the negotiations, the discussions will take time, because there are many details that will need to be worked out, and I am continuing my engagement with Secretary Lutnick. I will give an update at the appropriate time. Thank you very much