MTI to engage US on new 12.5% tariffs: 'Singapore does not condone the use of forced labour'

The Ministry of Trade and Industry (MTI) said on Friday (July 24) that it will continue engaging its US counterparts over the new 12.5 per cent tariffs imposed on imported goods "produced with forced labour".

Singapore is among the 60 territories hit with the new levies as US President Donald Trump's temporary 10 per cent worldwide tariffs expired on Friday midnight US Eastern time (12pm, Singapore time).

An MTI spokesperson said on Friday that about one-third of the Republic's domestic exports to the US will be subjected to 12.5 per cent tariff.

"Singapore does not condone the use of forced labour and has a comprehensive enforcement framework and good track record against such illegal practices within our borders," the spokesperson said.

MTI will engage the Office of the United States Trade Representative (USTR) to explore options: "Further details on how the tariff will be implemented will also be shared when ready."

The new levy is the result of USTR's investigations into 60 economies, including Singapore, over their acts, policies, and practices associated with the importation of goods produced with forced labour.

The USTR is also investigating Singapore and 15 other trading partners for excess industrial capacity.

MTI said that forced labour in international supply chains is a transnational issue most effectively addressed at the source.

"Singapore remains committed to upholding high labour standards globally and working with the international community, including the International Labour Organisation, to develop measures that address the issue of goods produced with forced labour," it said.

The ministry will also carefully consider any trade restriction, including a prohibition on goods produced with forced labour, in close consultation with the Singapore Economic Resilience Taskforce and the business community.

The Singapore Business Federation (SBF) said in a statement on Friday that it will work with affected businesses to understand the impact of the tariffs and support them through this period.

Chairman Mark Lee reiterated that Singapore businesses do not condone forced labour in global supply chains.

"Singapore has not introduced an import prohibition on goods produced with forced labour, and we appreciate that the government has been mindful of the potential impact on our companies and Singapore's position as a global trading hub," he said.

"Clear guidance and adequate transition periods will be essential to help businesses to comply effectively."

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