U.S. Tariffs Threaten $3.1 Billion in Singapore Pharma Exports as Trade Talks Continue

Singapore’s pharmaceutical industry is seeking clarity on whether it will be exempt from steep new U.S. tariffs, Deputy Prime Minister Gan Kim Yong said on Saturday.

Speaking to reporters, Gan, who also serves as Trade Minister, noted that Singapore exports around S$4 billion ($3.1 billion) worth of pharmaceutical products to the United States, the majority of which are branded drugs.

U.S. President Donald Trump announced on Thursday a 100% tariff on imported branded medicines, applicable to companies until they establish manufacturing operations in the United States.

“This is a concern for Singapore, as pharmaceuticals make up about 13% of our total exports to the U.S.,” Gan said.

He added that many Singapore-based drugmakers are already planning to expand or deepen their presence in the U.S., moves that could qualify them for tariff exemptions.

Gan, who met U.S. Commerce Secretary Howard Lutnick in August, said trade talks remain ongoing, with officials from both sides working on potential agreements in pharmaceuticals and semiconductors.

“Ultimately, we hope to reach an agreement with the U.S. that allows us to remain competitive in its market and ensures our pharma companies can continue exporting there,” Gan said. “Whether the tariff is set at 15% or another level is part of the negotiations, but we are looking for concessions compared with the current top-tier tariffs imposed by the U.S.”

Singapore’s exports to the U.S. are currently subject to a base tariff of 10%, despite a free trade agreement in place since 2004.

Broader sector-wide tariffs could also dampen demand for Singaporean products such as semiconductors, consumer electronics, and pharmaceuticals, which the central bank estimated in July accounted for nearly 40% of U.S.-bound exports.

Due to tariff hikes on steel and aluminum, the effective U.S. tariff rate on Singaporean exports rose from 6.8% in April to 7.8% in July.

($1 = 1.2910 Singapore dollars)