Singapore US tariff hit could be cushioned by chip, pharma exemptions

Proposed levy’s impact on the existing 10% duty remains unclear.

The proposed 12.5% US tariff could affect about one-third of Singapore’s exports to the US, but exemptions for selected sectors are expected to limit its overall impact.

An RHB report said exemptions for semiconductors, electronics, and pharmaceutical-related products should significantly reduce the market’s exposure to the levy.

The tariff proposal follows a US Section 301 finding that 60 economies, including Singapore, had failed to impose or effectively enforce bans on imports of goods produced with forced labour.

Section 301 of the Trade Act of 1974 allows the US to respond to foreign acts, policies, or practices deemed unreasonable, discriminatory, or restrictive to American commerce.

Meanwhile, Singapore is already subject to a 10% baseline US tariff on most exports to the country.

RHB said the interaction between the existing 10% tariff and the proposed 12.5% levy remains unclear, pending further clarification from US authorities. “Against this backdrop, we maintain our full-year GDP growth forecast at 4.0% for 2026.”

“While we remain positive on Singapore’s trade and manufacturing outlook, ongoing external uncertainties in the global environment continue to warrant close monitoring,” the bank added.

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