Debated in Parliament on 10 Sep 2026.
Mr Low Wu Yang Andre asked the Deputy Prime Minister and Minister for Trade and Industry (Trade) (a) beyond optical instruments and chemical products identified as tariff-exposed, which Singapore manufacturing sectors and worker groups have experienced material effects from the 12.5% US tariff; and (b) what economic, trade or employment indicators will trigger additional employment and adjustment support.
Mr Speaker, the United States Trade Representative (USTR) has concluded its Section 301 investigation into imports associated with forced labour and imposed a 12.5% tariff rate on imports from Singapore.
About one-third of Singapore's domestic exports to the US, or around $9.5 billion, are exposed to this 12.5% tariff. This is about 3% of our total domestic exports globally. In addition to optical instruments and chemical products, the other products in Singapore that are affected by the 12.5% tariff include offshore drilling and production platforms, and precious metals. Furthermore, the additional 2.5% in tariff compared to the earlier 10% tariff imposed under Section 122 is equivalent to an estimated 0.7 percentage point increase in Singapore's overall effective tariff rate with the US.
We are assessing a range of economic indicators, including sectoral economic performance and labour market structure metrics, as well as firms’ outlook and expectations. We are also actively engaging businesses and the Labour Movement so that we can detect early signs of difficulties faced by businesses and workers if they arise. Thus far, the impact of the US' Section 301 tariff on our economy has been muted.
Nonetheless, the Singapore Economic Resilience Taskforce has been working closely with our tripartite and industry partners to study the impact of the tariffs and help businesses adapt.
In October last year, we launched the Business Adaptation Grant (BizAdapt) to support eligible enterprises in redesigning their business operations and strengthening supply chain resilience. And at this year's Budget, we also announced higher grant support levels for schemes, such as the Market Readiness Assistance grant, to help our firms diversify and grow in overseas markets.
Mr Low.
I thank the Minister of State for the response. I have two supplementary questions.
The first is relating to workers that might be affected by the tariffs. I understand that the Government tracks broad metrics across both business outcomes and worker outcomes. I want to ask specifically if the Government is also tracking beyond redundancies, whether there are workers that are materially affected in terms of being furloughed or having their working hours or earnings reduced in some way, and whether any specific assistance will be extended to workers affected in such a way?
The second supplementary question is, I understand in response to a related question that Member, Mr Yip Hon Weng, asked in the August Sitting, Deputy Prime Minister Gan had responded that one of the measures that was announced earlier this year was the one-off SME cash grant that was announced in July. But I understand that that was conceptualised primarily in relation to the economic conditions in the earlier half of this year relating to the Middle East conflict and the energy crisis. So, are there any more specific one-off cash grants that the Government is considering specifically in relation to the impact that might transpire from the US' tariffs?
I thank the Member for his clarifications. As I mentioned in my reply, the current assessment of the impact of the tariffs is that it is currently muted. But as Members are aware, we are still in negotiations with the US. So, we will continue to assess the impact of the current tariffs as well as any future potential tariffs.
For his suggestion on whether we are looking at workers beyond just redundancies but also increased working hours or reduced pay, that is something that we will study and if required, we stand ready to support our businesses and our workers.
PAPERCUTS