Singapore assessing impact as US proposes 12.5% tariffs over forced labour probe

SINGAPORE: About one-third of Singapore’s domestic exports to the United States could be affected by the Trump administration's potential new tariffs of 12.5 per cent, under a trade measure linked to a US investigation into forced labour enforcement.

Singapore’s Ministry of Trade and Industry (MTI) said on Thursday (Jun 4) that it is assessing the potential impact of the proposed measures and will continue to engage Washington’s Office of the United States Trade Representative (USTR).

Earlier this week, the USTR published the findings of its Section 301 investigation into 60 economies over their alleged failure to enforce bans on imports of goods produced with forced labour.

It concluded that 54 of these economies, including Singapore, China and Britain, "failed to impose and effectively enforce a forced labour import prohibition", and proposed a 12.5 per cent tariff on certain goods.

The proposed duties would apply to a portion of affected exports, with exemptions covering categories such as energy products, pharmaceutical ingredients, certain electronics and semiconductors.

In response to CNA's queries, MTI said: "The Ministry of Trade and Industry will continue to engage the USTR constructively to explore options on this matter, and is assessing the impact of the proposed actions on Singapore’s exports to the US."

The ministry reiterated Singapore’s position that it does not condone forced labour in supply chains and maintains a comprehensive domestic enforcement framework against such practices. It also said there is no evidence of Singapore’s involvement in supply chains linked to forced labour.

"Forced labour is a transnational issue that requires international cooperation,” said an MTI spokesperson, adding that Singapore had conveyed its position during bilateral consultations with the USTR.

According to the USTR, economies that fail to block the import of goods made with forced labour create unfair competition by allowing artificially cheap goods into global markets, burdening US businesses.

The proposed tariffs would not take effect immediately. They are subject to public comment and review, with hearings scheduled to begin on Jul 7.

The move comes as temporary 10 per cent tariffs imposed after the US Supreme Court struck down earlier “reciprocal” tariff measures are set to expire on Jul 24.

Analysts said the latest proposals are part of Washington’s broader effort to rebuild tariff regimes following the court’s decision.

Singapore and 15 other economies are also listed in another ongoing USTR investigation into structural excess capacity and production in manufacturing sectors.

Findings from that probe have yet to be released.