Overview

• Singapore and the United States are in early negotiations to establish preferential or zero tariffs on pharmaceutical exports, a key sector making up over 10% of Singapore’s US exports.
• Deputy Prime Minister Gan Kim Yong confirmed that discussions hinge on ensuring a secure pharmaceutical supply chain to meet US requirements.
• Singapore’s government has warned of potential further GDP forecast downgrades, following an April revision to 0–2% growth for 2025.
• Despite a US-Singapore free trade agreement, Singapore faces a 10% baseline tariff on exports, far lower than the levies imposed on neighboring ASEAN countries.
• The broader global trade outlook remains uncertain, with recent US-China tariff reductions providing limited relief to trade-dependent economies like Singapore.