Written reply to PQ on local industries affected by increase in US tariffs and measures to help affected SMEs

Question:

Assoc Prof Terence Ho: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) which industries have the greatest dependence on US for final demand and are likely to be affected by the increase in US tariffs from 10 to 15 percent under section 122 of the Trade Act of 1974; and (b) what steps will be taken to help firms in these industries, particularly Small and Medium Enterprises (SMEs) to cope. 

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.                  This question was addressed by the reply to Questions No. 5 to 7 for oral response during the Parliament Sitting on 5 March 2026. 

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 Economic Emergency 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.                  We will 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. 

6.                  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.