Singapore expects about SG$9.5 billion, or roughly one-third, of its exports to the U.S. to be affected by a new 12.5% tariff imposed on July 24, Reuters reported Wednesday, citing Trade Minister Gan Kim Yong.
The tariff applies to exports including optical instruments and chemical products, while energy and energy products, certain electronics and aerospace products, semiconductors, and pharmaceuticals are exempt, the report said.
Gan said the U.S. imposed the tariff because Singapore lacks legislation prohibiting the import of goods produced with forced labor. Singapore has said there is no evidence linking the city-state to the trade of such goods, according to Reuters.
Singapore's goods trade totals around SG$1.4 trillion annually, meaning any import prohibition could have significant implications, Gan said, according to the newswire.
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