Singapore Seeks Tariff Exemption for Pharmaceuticals Amid U.S. Trade Talks
Singapore's pharmaceutical industry is negotiating with the U.S. for exemption from new tariffs. These tariffs significantly impact Singapore's $3.1 billion pharmaceutical exports to the U.S., forming 13% of the island's total exports there. Ongoing trade talks aim to solidify mutual benefits and preferential treatments.
Singapore's pharmaceutical sector faces uncertainty as it grapples with a new tariff regime imposed by the United States. The tariffs, announced by President Donald Trump, could severely impact Singapore's pharmaceutical exports, valued at approximately S$4 billion annually.
Deputy Prime Minister Gan Kim Yong expressed concerns over the tariffs affecting the competitiveness of Singapore's exports, with pharmaceuticals alone constituting 13% of Singapore's total exports to the U.S. Gan, who also serves as trade minister, indicated that ongoing discussions aim to secure exemptions for companies ready to expand their U.S. presence.
Despite a 2004 free trade agreement, the baseline tariffs remain a challenge. Current dialogues with U.S. counterparts, including Commerce Secretary Howard Lutnick, focus on achieving a preferential rate and exploring similar arrangements for the semiconductor sector, integral to Singapore's export economy.
(With inputs from agencies.)
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