The United States imposed a new 12.5% tariff on approximately S$9.5 billion (US$7.4 billion) worth of Singapore’s domestic exports after a forced labour probe covering imports from 60 economies, effective July 24, 2026 [1, 2, 3].
Singapore faces the highest tariff rate among the affected countries because it does not have a law prohibiting imports produced with forced labour, nor a reciprocal trade agreement with the US addressing this issue [1, 2, 3]. The rate replaces an earlier 10% tariff, expired last month, increasing Singapore’s overall effective tariff rate by an estimated 0.7 percentage points [1, 2, 3].
The products impacted include optical instruments and chemical products. Key sectors such as energy, certain electronics, aerospace, pharmaceuticals, and semiconductors remain exempt from the tariffs [1, 2, 3].
Deputy Prime Minister Gan Kim Yong said Singapore has actively engaged with the US Trade Representative at political and official levels during the investigation, including his visit to Washington DC in April 2026. He stated, "We made clear that there is no evidence that Singapore is involved in the trade of goods associated with forced labour" [1, 2]. He also noted, "Importantly, none of the 60 economies, including those that already have such prohibitions in force, received a full exemption from the tariff" [3].
Singapore’s government is weighing wider trade-offs before pursuing a lower tariff and continues to engage the US Trade Representative on the matter [1, 2, 3].
By comparison, Malaysia faces tariffs on only 4.2% of its exports to the US, valued at RM63.3 billion, with 68% exempt due to sector exclusions such as semiconductors and electrical and electronics products, according to a Phillip Capital analysis published on August 6, 2026 [4].
On August 5, 2026, Gan Kim Yong provided a parliamentary response detailing the impact of the US tariffs on Singapore’s exports [3]. The new tariff remains in effect as Singapore continues its discussions with the US trade authorities.
