DPM Gan: Singapore likely to face new 15% US tariff, must prepare for impact

Singapore will likely be subjected to US president Donald Trump's new global tariff rate of 15 per cent, said Deputy Prime Minister Gan Kim Yong, highlighting the need for the country to prepare for its impact.

Speaking to media at a doorstop interview on Sunday (Feb 22), DPM Gan noted that the increase is "a stark reminder... that [Singapore is] now facing a very unpredictable and uncertain operating environment", describing the situation as "very fluid".

Elaborating on the element of "uncertainty" around the tariffs, DPM Gan said the government will monitor developments to assess its next steps and explore alternatives, and possible exemptions on the levies.

"We will continue to work with our counterparts in the US to seek greater clarification on how the tariff will be implemented...because Section 122 has a time limit and therefore we can expect there will continue to be changes in time to come," he told the media.

Trump had increased global levies on US imports to 15 per cent on Feb 21, under a never-before-used law, Section 122, that allows temporary tariffs of up to 150 days.

This comes after the US Supreme Court ruled that he did not have the power to impose his previous tariff programme, where Singapore faced a 10 per cent baseline tariff.

[[nid:730239]]

"What would happen after the time limit is something that we will have to observe. It may be extended; it gets congressional approval; it may not. There may be new legislation that US will use to continue with the tariff one form or the other," said DPM Gan, who is also Minister for Trade and Industry.

He added that the government and the Singapore Economic Resilience Taskforce (SERT) will engage businesses and workers to assess the impact on business and jobs.

"In all likelihood, this new 15 per cent across-the-board tariff will be applicable to Singapore, so we need to be prepared for the impact," he added.

If necessary, the government is prepared to introduce more measures to support companies, workers, and households.

A spokesperson from the Ministry of Trade and Industry (MTI) said in a statement on Sunday that it will work with tripartite and industry partners through SERT to "provide timely information to our businesses and workers and gather feedback on how they are affected". 

It also encouraged encourage businesses to tap on various measures available — such as the Corporate Income Tax rebate to help manage costs, and enhanced grant support levels for schemes such as the Market Readiness Assistance grant and the Business Adaptation Grant, among others — to build up resistance and adaptability.

MTI added that the government will also be engaging US counterparts to seek clarity on the processes for tariff refunds. 

According to the US Census Bureau data, the US ran a goods trade surplus of US$3.6 billion (S$4.5 billion) with Singapore in 2025, higher than the surplus of US$1.9 billion in 2024, said MTI.

'Difficult' to negotiate baseline

Responding to a question on whether Singapore could be free of tariffs within the next six months, DPM Gan discouraged such thinking.

"It will be unproductive for us to assume that we are going to get out of this tariff structure anytime soon, and better for us to accept the fact that we are going to have to live with this uncertain world going forward," he explained.

The minister added that it will be "very difficult" to negotiate for exemption if the 15 per cent tariff is imposed on all countries without exception.

Singapore hence needs to be adaptable and create opportunities by exploring alternatives such as new markets, higher value-added products, or a focus on sectors that the US will need and will give exemption on the tariff.

"This way, we can be able to have a resilient economy that will be able to withstand all the shocks from the external factors," DPM Gan said.

[[nid:729045]]

lim.kewei@asiaone.com