US Tariffs Put $3.1B Singapore Pharma Exports at Risk
Pharmaceutical companies in Singapore are inquiring about their eligibility for an exemption from the significant tariffs imposed by the United States on their products, as stated by Singapore’s Deputy Prime Minister Gan Kim Yong on Saturday. Singapore exports approximately S$4 billion ($3.10 billion) worth of pharmaceutical products to the U.S., with the majority of these exports consisting of branded drugs, Gan, who is also the trade minister, informed reporters. On Thursday, U.S. President Donald Trump declared that there would be 100% duties on imports of branded drugs, a measure that would affect companies unless they establish a manufacturing presence in the United States.
“This is a concern for Singapore as pharmaceuticals form around 13% of all Singapore exports to the U.S.,” said Gan. He stated that numerous pharmaceutical companies in Singapore have current intentions to expand or establish their business presence in the U.S., which could make them eligible for a tariff exemption. Gan, who met U.S. Commerce Secretary Howard Lutnick in August, stated that trade talks with the U.S. are ongoing, with officials on both sides diligently working on the details of potential agreements for the pharmaceutical and semiconductor sectors. “Ultimately, we hope to be able to have an arrangement with the U.S. to allow us to continue to be competitive in the U.S.”
Market, to enable our pharmaceutical companies to sustain their exports to the U.S. market. “As to whether the tariff rate will be 15% or any other tariff is something that is part and parcel of the negotiation, but we do look forward to having some preferential treatment versus the current top-line tariff the U.S. has imposed,” said Gan. Despite a free trade agreement established in 2004, Singapore’s exports to the U.S. face a 10% baseline tariff.
Wider sectoral tariffs may negatively impact the demand for Singaporean products, such as semiconductors, consumer electronics, and pharmaceutical goods. The central bank noted in July that these items represent approximately 40% of exports to the United States. The U.S. tariff rate on Singapore’s exports increased to 7.8% in July, up from 6.8% in April, due to hikes in tariffs on steel and aluminium.
