Singapore monitoring impact of US' latest global tariff on imports while awaiting implementation details: DPM Gan

Authorities say they are seeking clarity on implementation while preparing support for businesses and workers amid rising uncertainty.

The United States will impose a temporary global tariff on imports, a move that Singapore authorities say they are monitoring closely given the uncertain operating environment.

Singapore’s Ministry of Trade and Industry (MTI) said the White House issued an order on 20 February 2026 to impose a global tariff of 10% under Section 122 of the Trade Act of 1974 on all imports into the US for 150 days, effective 24 February 2026 at 12:01am. On 21 February, Donald Trump, President of US announced through a Truth Social post that the tariff rate would be raised to 15%.

Certain goods exempted

MTI noted that some types of goods are exempted from the Section 122 tariffs. These include energy and energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics, certain aerospace products, and metals used in currency and bullion, among others.

Semiconductors and pharmaceuticals are also not subject to the Section 122 tariffs at this stage, as they may be the subject of Section 232 tariffs that have not yet been imposed.

Government seeking clarity, engaging stakeholders

The Singapore Government said it is monitoring the situation closely and will engage US counterparts to seek clarity on the implementation of the new Section 122 tariffs and processes for tariff refunds.

According to US Census Bureau data, the US ran a goods trade surplus of US$3.6bn with Singapore in 2025, higher than the surplus of US$1.9bn in 2024.

Authorities will also work with tripartite and industry partners through the Singapore Economic Resilience Taskforce (SERT) to provide timely information to businesses and workers, and to gather feedback on how they are affected.

To build resilience and adaptability, companies are encouraged to tap on measures announced at Budget 2026. These include a Corporate Income Tax rebate to help manage costs and enhanced support for overseas expansion, such as higher grant support levels for the Market Readiness Assistance grant and the Business Adaptation Grant, which was introduced to help companies navigate the tariff environment. Loan limits under the Enterprise Financing Scheme for Trade and SME Fixed Asset Loans have also been increased.

“Unpredictable and uncertain” operating environment

Speaking to media on 22 February, Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry said the developments are a reminder that Singapore is "facing a very unpredictable and uncertain operating environment."

He noted that Singapore’s economy grew by 5% in 2025, even though domestic exports to the US declined by close to 9%.

Details on how the new tariffs will be implemented have yet to be announced, and it remains unclear how countries around the world will respond. As Section 122 tariffs have a time limit, further changes may occur over time.

Assessing impact on businesses, jobs, and households

The Government will continue working with SERT and stakeholders to assess the impact on businesses, jobs, and livelihoods, and to determine how best to support them through the uncertainties.

DPM Gan said it is likely that the new 15% across-the-board tariff will be applicable to Singapore, and the country must be prepared for the impact.

Budget 2026 has already rolled out measures to support companies, enterprises, workers, and households. Authorities indicated they are prepared to introduce additional measures if necessary while continuing to monitor developments.

Preparing for the long term

Officials emphasised the need to prepare for the long term, describing the situation as part of a new world that Singapore must adapt to. The ongoing Economic Strategy Review will play an important role in strengthening competitiveness and deepening resilience.

“We will continue to work with our counterparts in the US to seek greater clarification on how the tariff will be implemented, and more details about the new round of tariff implementation, bearing in mind that there is still significant uncertainty surrounding the tariffs, because Section 122 has a time limit, and therefore we can expect that the tariff will continue to have changes in time to come,” Minister Gan said.

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