Singapore Warns Unilateral Tariffs Could Disrupt Supply Chains, Contradicts US Trade Deficit Claims

Gate News message, April 16 — Singapore’s business and government bodies have formally responded to U.S. trade investigations, warning that unilateral tariffs and import restrictions risk disrupting deeply intertwined supply chains that benefit both nations.

The Singapore Business Federation (SBF) urged the U.S. Administration to recognize the shared commitment to fair, market-oriented trade, noting that Singapore’s investments support over 250,000 American jobs. SBF pointed out that about 6,600 U.S. companies operate in Singapore with extensive two-way investment integration across supply chains.

Data presented by SBF contradicts claims of unfair trade practices. The U.S. runs a substantial and growing overall trade surplus with Singapore of approximately $27 billion in 2024, widening to $33.3 billion in 2025. On the investigation into structural excess capacity, SBF stated that Singapore’s manufacturing sector is demand-led and commercially driven, shaped by market discipline and high operating costs that discourage below-cost pricing. The federation emphasized that much of Singapore’s trade reflects its role as a global hub, distinguishing entrepot and re-export activities from domestic overproduction.

Addressing forced labor allegations, SBF highlighted Singapore’s strong legal framework prohibiting forced labor under constitutional and criminal law. The U.S. Department of State’s 2025 Trafficking in Persons Report ranks Singapore as tier 1, the highest ranking for combating trafficking and forced labor. Singapore-based exporters already comply with U.S. import requirements under Section 307 of the U.S. Tariff Act, with no evidence of forced-labor goods entering the U.S. from Singapore.

On April 15, Singapore’s Ministry of Trade and Industry (MTI) filed two written submissions to the Office of the U.S. Trade Representative. MTI noted that in semiconductors and electrical equipment, and petrochemicals—two of three sectors flagged in the USTR investigation—the U.S. ran trade surpluses with Singapore of $1.8 billion and $463 million, respectively, both increasing in 2025. The only deficit sector was pharmaceuticals, where the gap narrowed from $17.7 billion in 2024 to $12.9 billion in 2025.