Singapore disagrees with US-Singapore trade figures given by US

Singapore has expressed disagreement with U.S. trade figures that highlight a $2.8 billion goods trade surplus with the country in 2024, as reported by the U.S. Trade Representative. Trade Minister Gan Kim Yong emphasized that Singapore, despite running a bilateral trade deficit, was "disappointed" by the imposition of 10% base tariffs, which contrast with higher tariffs applied to other Southeast Asian nations (32–49%). The minister noted that Singapore could invoke countermeasures under the 2004 U.S.-Singapore Free Trade Agreement (FTA) but opted against retaliation to avoid raising import costs for businesses.

The U.S. data, however, may not fully account for Singapore's role as a global trade hub, where goods are often transshipped or rebranded. Oxford Economics observed that Singapore's low tariffs on U.S. imports under the FTA reduce reciprocal tariff risks, though indirect effects—such as supply chain disruptions or rerouted trade—could still harm its export-dependent economy. Meanwhile, Singaporean firms are adapting to tariff uncertainties by diversifying production and seeking compliance with "Made in Singapore" rules, which require at least 25% local content to qualify for preferential tariffs.

Small and medium enterprises (SMEs) face added challenges, with industry leaders urging strategic adjustments, such as onshoring production or restructuring supply chains to mitigate U.S. tariff impacts. The government has also reinforced export control frameworks to prevent misuse of Singapore's trade credentials, emphasizing transparency amid rising geopolitical risks. While Singapore seeks dialogue with the U.S. to address concerns, the dispute underscores broader tensions in managing trade relations amid shifting global dynamics.