US 'not prepared' to lower 10% tariff on S'pore, but ready to explore ways to facilitate S'pore's critical exports: DPM Gan

The People's Action Party (PAP) held its rally for Punggol GRC on Apr. 26 evening.

During his rally speech, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong touched on several upcoming projects in the GRC, such as the Punggol Coast Hawker Centre, which was said to be ready by July 2025.

On the national level, he provided an update on Singapore's negotiations with the United States (U.S.) on the 10 per cent tariff imposed on Singapore's exports by U.S. President Donald Trump.

U.S. not ready to lower tariff on Singapore

Before the rally, DPM Gan posted on LinkedIn on Apr. 26 morning that he had a virtual meeting with U.S. Secretary of Commerce Howard W Lutnick on Apr. 25.

DPM Gan said he and Lutnick engaged in "a productive discussion" on the economic and business ties between the two countries, with him noting that the U.S. has enjoyed a consistent trade surplus with Singapore that amounted to US$30 billion (S$39.43 billion) in 2024.

While acknowledging the "excellent and balanced" trading relationship between Singapore and the U.S., Lutnick shared that the U.S. is not ready to lower its 10 per cent tariff.

Nevertheless, both parties agreed to explore how they could deepen their economic links positively and will continue discussing "the practical way forward".

"I welcomed Secretary Lutnick to visit Singapore, and look forward to further developing our trade and investment partnership with the U.S.," wrote DPM Gan.

Negotiations off to 'a good start'

At the rally, DPM Gan said that he is leading the negotiation efforts with the U.S. in his capacity as the chair of the Singapore Economic Resilience Taskforce.

Besides Lutnick, he had also met with U.S. Trade Representative, Ambassador Jamieson Greer.

Describing his conversations with his U.S. counterparts as "very good discussions", DPM Gan said the U.S. is willing to enter into talks with Singapore "because of the long-standing partnership the PAP government has with the U.S administration as well as the U.S. leaders".

"They know us, and they trust us, and this mutual trust is more critical in times of crisis for us to be able to come together, to talk with one another and to negotiate.

And, it is based on this [that] the U.S. is prepared to explore a practical way forward to facilitate Singapore's critical exports to the U.S."

"It is not a done deal, but it is a good start," DPM Gan added.

He also acknowledged that negotiations are ongoing and that there is "still a lot more to do".

Although negotiations are confidential, DPM Gan emphasised that his team intended to pursue a resolution "rigorously to create more opportunities for Singapore and Singaporeans".

He will share further details in the time to come.

Top images by Mothership