Singapore may seek cap on US pharma tariffs like Japan and EU, says DPM Gan

Trade talks with US are ongoing, including on the threat of tariffs on semiconductors

- Ovais Subhani Senior Business Correspondent

Deputy Prime Minister Gan Kim Yong speaking to the media on Sept 27. He said the objective of the talks with the United States administration is to be able to have an arrangement that allows Singapore to continue to be competitive in the US market.

(ST PHOTO: NG SOR LUAN)

Singapore is looking into the possibility of a cap on the tariff rate, similar to those negotiated in the US' trade deals with Japan and the EU, Deputy Prime Minister Gan Kim Yong said on Sept 27.

DPM Gan was speaking to the media in Singapore after US President Donald Trump announced sweeping new tariffs on Sept 25, including 100 per cent duties on branded drugs imported into the US with effect from Oct 1.

Singapore exports about $4 billion worth of pharmaceutical products to the US, amounting to about 13 per cent of its domestic exports to the US and about 19 per cent of overall pharmaceutical domestic exports.

Most of those exports are patented, branded drugs that will fall under the ambit of the latest tariffs.

A White House official had earlier told Bloomberg News that the tariffs on pharmaceutical imports will not apply to countries with negotiated agreements with the US that contain provisions on drugs, such as the European Union and Japan.

DPM Gan said Singapore is taking a look at the trade deals to see whether they can be used as a precedence. “It is something that is part and parcel of the discussion and negotiation between the US and Singapore,” he said.