Trump to impose 12.5% tariff on S'pore over 'forced labour' allegations, previously rejected by S'pore govt

United States President Donald Trump will impose new tariffs ranging from 10 to 12.5 per cent on goods from 60 trading partners from Jul. 24.

Singapore is on the list of countries the U.S. Trade Representative alleged to have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour, according to a Jul. 23 memorandum.

Singapore will be hit with a 12.5 per cent rate, along with 37 other countries including China, Reuters reported.

Countries such as Cambodia, Malaysia, Indonesia, India, Bangladesh, the United Kingdom, and Mexico will get a lower 10 per cent.

They will take effect just as the current 150-day temporary 10 per cent tariffs expire at the start of Jul. 24, U.S. time.

Allegations previously rejected by MTI

The new tariffs are the result of investigations the U.S. Trade Representative launched in March 2026 into countries that allegedly do not properly enforce a forced labour import ban.

These countries include Singapore.

Previously on Jul. 6, Singapore's Ministry of Trade and Industry (MTI) Singapore’s Ministry of Trade and Industry stated that "Singapore does not condone the use of forced labor in supply chains", and its import regulations are consistent with international rules and practices.

"There is no evidence of Singapore’s role in the supply chains of goods associated with forced labor exported to the U.S."

The allegations have also been rejected by other countries.

The foreign minister of Norway, also included in the list, said, "There is no basis for this tariff against Norway because we already have clear rules that are intended to prevent trade in goods produced using forced labor."

A corrective action

Announcing the new duties on Jul. 23, U.S. Trade Representative Jamieson Greer said:

"The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.

Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere."

The tariffs will be imposed under Section 301 of the U.S. Trade Act of 1974, which governs trade enforcement of practices that burden or restrict American commerce, BBC reported.

This means they will be subject to less legal risk of being struck down by the Supreme Court, as Trump's previous sweeping tariffs were in February, according to Reuters.

The new duties account for 99.4 per cent of U.S. imports, but goods such as steel, aluminium, oil and gas, fertiliser, and certain food items will be exempted.