SAEDNEWS: Pharmaceutical companies in Singapore are urgently seeking clarification on potential exemptions from steep new United States tariffs.
Singapore exports around S$4 billion (US$3.10 billion) worth of pharmaceutical products to the United States each year, making the sector a key highlight of the city-state’s global trade footprint. Most of these exports are branded drugs, which are now facing potential 100% tariffs unless manufacturers establish a physical presence in the US.
Pharmaceuticals account for roughly 13% of all Singaporean exports to the American market, underscoring their strategic importance. Despite these challenges, there is optimism among industry leaders: Deputy Prime Minister Gan Kim Yong highlighted that many Singapore-based pharmaceutical firms may qualify for exemptions due to existing US expansion plans.
Trade negotiations between Singapore and the US are ongoing, covering both pharmaceuticals and semiconductors. Gan emphasized that the aim is to secure an arrangement that ensures Singaporean products remain competitive in the US market. The exact tariff rate—whether 15% or another figure—remains a key point of discussion.
Currently, Singaporean exports to the US face a 10% baseline tariff, even with the 2004 free trade agreement in place. Broader sectoral tariffs could affect high-demand products such as semiconductors and consumer electronics. Following steel and aluminum tariff hikes, the effective US tariff on Singapore’s exports rose to 7.8% in July, up from 6.8% in April.
For visitors and global trade enthusiasts, Singapore’s pharmaceutical sector offers a fascinating lens into innovation, global supply chains, and strategic market adaptation, showcasing how a small but dynamic nation navigates complex international commerce.
