Updated Assessment on Impact on Singapore's Economy and Businesses from New 15% Tariffs

Mr Saktiandi Supaat asked the Deputy Prime Minister and Minister for Trade and Industry (a) what quantitative indicators or thresholds such as, export orders, Purchasing Managers' Index (PMI) for new exports, retrenchments in trade-exposed sectors, will trigger additional support measures in response to heightened tariff uncertainty; and (b) whether any measures being studied will be sector-targeted, such as the electronics, precision engineering, logistics sectors rather than broad-based.

Dr Choo Pei Ling asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry can provide an update in its assessment of the impact on Singapore arising from the new 15% tariff imposed on all goods entering the US from 24 February 2026; and (b) whether the Ministry can negotiate for exemptions based on the increasing US goods trade surplus with Singapore.

Mr Speaker, on 20 February 2026, the Supreme Court of the United States (SCOTUS) struck down the US' "reciprocal" tariffs that were imposed on the US' trading partners under the International Emergency Economic Powers Act (IEEPA). On the same day, the US announced a tariff of 10% under section 122 of the Trade Act of 1974 on all US imports for 150 days. The US Customs and Border Protection (CBP) started collecting this 10% tariff from 12.01 am on 24 February 2026, US time.

While US President Donald Trump announced via a Truth Social post on 21 February 2026 that the tariff rate would be raised to 15%, the US has yet to issue an official directive on this increase.

The immediate direct impact of these tariff developments on Singapore's economy is not expected to be significant, given that the current Section 122 tariff of 10% is broadly unchanged from the previous 10% "reciprocal" tariff that had been imposed on Singapore's exports to the US since April 2025.

Those sectors with a greater dependence on the US for final demand and whose exports are covered by the section 122 tariff, such as the precision engineering cluster and some segments under the general manufacturing cluster, could see a greater impact from any tariff increase.

There remains considerable uncertainty. It is unclear if the current 10% section 122 tariff will be raised to 15%. It is also unclear what the overall tariff landscape will be after the current 150-day timeline. At the same time, we may see sectoral tariffs under section 232, as well as tariffs imposed under different legal authorities in due course.

We will continue to monitor such developments closely and engage our US counterparts to ensure that our economic interests are safeguarded.

We will also continue to work with our tripartite and industry partners through the Singapore Economic Resilience Taskforce (SERT) to gather feedback on how businesses and workers are affected. For instance, SERT convened last week to discuss the tariff developments and preliminary sentiments of businesses and workers.

The Government is committed to helping our businesses and workers navigate the changes arising from these tariff developments. In October 2025, SERT launched the Business Adaptation Grant (BizAdapt) to help businesses affected by the tariffs to evaluate the impact, optimise their supply chains and reconfigure their operations. The GRaduate Industry Traineeship (GRIT) was also launched as a temporary scheme to help fresh graduates gain industry-relevant experience and skills amid economic uncertainty, so that they are better equipped to transition into full-time employment subsequently. At Budget 2026, the Prime Minister and Minister for Finance announced that support levels under BizAdapt would be raised from up to 50%, to up to 70%. We stand ready to provide further support, as needed.

Mr Speaker, I would like to thank the Minister of State for her answers. I have one supplementary question. Usually, after section 122, it usually proceeds with section 301 and 232 investigations, and the concern is whether bigger tariffs may come in later.

So, the question I have is: given that sort of situation that section 122 is temporary and may be followed by further investigations or additional trade measures, as President Trump has indicated, to 15%, could the Minister of State elaborate on how the Government is preparing Singapore businesses for the possibility of more persistent tariffs or sector-specific measures? Which I have raised many times, my concerns about sector-specific tariffs or measures.

And whether Singapore has a clear contingency playbook. I know the Minister of State has mentioned about the SERT and BizAdapt, which is very good, and I hope we can do even more to help our businesses. But the question is on a broad level, a macro level, whether Singapore has a clear contingency playbook should global trade conditions deteriorate further, and on top of that, the additional concern that we are facing out of Middle East, and with the Strait of Hormuz and other possibilities that may arise?

Mr Speaker, we are watching the situation closely. And through SERT, we are keeping close touch with businesses and the workers and industry partners of various sectors to understand the impact and the implications of the tariffs and the great uncertainties.

Indeed, like Mr Saktiandi said, there could be further changes to the tariff landscape.

Just let me highlight that thus far, the tariffs' impact on Singapore's economy, we have assessed it to be rather limited. I think we are very thankful that there have been measures put in place and there is some resilience in various sectors. The Singapore Business Federation (SBF) is also doing its part, in partnership with the Government, to advise companies. For example, SBF has published a playbook to guide companies on key actions to take, such as how to sense-make the impact through risk-mapping, to take action, such as re-configuring their supply chains, and also planning ahead by digitalising and innovating to build long-term resilience.

We stand ready to roll out further measures to support sectors that are affected, when necessary.

Thank you, Mr Speaker, and thank you to the Minister of State for the reply. Beyond seeking exemptions and supporting affected businesses, how is Singapore strengthening the resilience of our trade model, in light of these new US tariff measures? Additionally, how can Singapore continue to position ourselves as a trusted and reliable economic partner, amid rising trade tensions?

Mr Speaker, Dr Choo Pei Ling's questions require very long answers, but I know that we are short of time. I actually suggest that she refer to my speech in the Ministry of Trade and Industry's (MTI's) Committee of Supply (COS).

But just to highlight a few key points, Singapore will continue to safeguard and expand our economic space by deepening, diversifying and also defending our economic interest, and also our trade linkages with all our trading partners.

We have a robust network of partnerships with like-minded countries that share our commitment to free, fair and open trade, and we will continue to deepen our collaborations with them. In addition to strengthening trade links with key trading partners, we are also pursuing closer trade relations with emerging markets, such as Latin America, South Asia, Middle East and Africa, and also furthering our cooperation in growth areas through digital and green economy agreements, such as the EU-Singapore Digital Trade Agreement.

We encourage businesses to continue tapping on our 29 Free Trade Agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership. And as I mentioned at the MTI COS, we are strengthening our regional bloc-to-bloc engagements. These are all done very deliberately with a long-term interest of diversifying and deepening Singapore's network of trade relations.