Gan Kim Yong: New 15% tariffs will likely apply to S'pore, need to be prepared for impact

Singapore has weathered the impact of tariffs well, achieving economic growth of five per cent, though exports to the U.S. have declined by close to nine per cent.

But this latest round of tariffs, announced by U.S. president Donald Trump on Feb. 21, will probably apply to Singapore, said Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong.

"In all likelihood, this new 15 per cent across-the-board tariff will be applicable to Singapore. We need to be prepared for the impact," Gan said at a Feb. 22 doorstop at Punggol Community Centre.

Speaking to the media, Gan noted that this latest round of tariffs is a "stark reminder" that Singapore is facing a very "unpredictable and uncertain" environment.

While there are still a lot of unknowns as to how different countries will respond, Gan said it is important for Singapore to remind itself that this is the new world it has to face.

Gan said the government will continue to work with its counterparts in the U.S. to seek greater clarification on how the tariff will be implemented, as well as more details.

In addition, there is still significant uncertainty surrounding the tariffs because "Section 122 has a time limit, and therefore we can expect the tariff will continue to [have] changes in time to come".

The Singapore Economic Resilience Taskforce (SERT) will work together with various stakeholders to see how to help them navigate through these uncertainties, he added.

Singapore prepared for more measures

Gan noted that the government, through Budget 2026, has rolled out a series of measures to support companies, enterprises, workers and households.

"And if need be and necessary, we are prepared to roll out more measures, and we will continue to monitor the situation."

In a separate statement, a spokesperson for the Ministry of Trade and Industry (MTI) acknowledged the White House's order to impose a global tariff of 10 per cent under Section 122 of the Trade Act on all imports into the U.S. for 150 days, with effect from Feb. 24, 2026.

The spokesperson also acknowledged Trump's Truth Social post that the tariff rate will be raised to 15 per cent.

"Footnote [1] Section 122 permits the U.S. President to impose temporary import tariffs or quotas to address serious balance-of-payments deficits, at rates not exceeding 15 per cent, for a maximum of 150 days," the spokesperson said.

However, "according to the U.S. Census Bureau data, the US ran a goods trade surplus of US$3.6 billion with Singapore in 2025, higher than the surplus of US$1.9B in 2024".

"The Singapore government is monitoring the situation closely and will engage our U.S. counterparts to seek clarity on the implementation of the new Section 122 tariffs and processes for tariff refunds."

In addition, the spokesperson noted that certain types of goods are exempted from the Section 122 tariffs, such as energy and energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics, certain aerospace products and metals used in currency and bullion, amongst others.

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

In the meantime, MTI said they will work with partners through SERT to provide timely information to businesses and workers and gather feedback on how they are affected.

They encouraged businesses to tap into the various measures available, including measures recently announced at Budget 2026.

Top image by Mothership