Singapore in US Tariff Talks to Shield Pharma Industry
Singapore is in talks with the USA over semiconductors and pharmaceutical tariffs, with discussions also underway about a ceiling on tariff rates. The city-state's Prime Minister Lawrence Wong previously criticized USA tariffs, stating they are not actions taken towards a friend.
Singapore's pharmaceutical industry is significant, with five major drugmakers, including Pfizer and Amgen, having facilities in the country and also operating USA manufacturing plants. Pharmaceuticals account for about 13% of Singapore's exports to the USA, worth over S$4 billion ($3.1 billion).
The USA has announced new levies on pharmaceuticals, which could potentially impact Singapore's drugmakers. However, Deputy Prime Minister Gan Kim Yong has stated that these may not have an immediate impact. Most pharmaceutical companies in Singapore have built or plan to build capacity in the USA, potentially exempting them from the tariffs. Singapore is discussing with the USA administration about a ceiling on tariff rates, similar to deals with other countries like Korea, Japan, and the EU.
Barclays estimates that Singapore's effective tariff rate would rank just behind Vietnam's 20% after the USA tariffs on pharmaceuticals are implemented. Singapore is actively engaging with the USA in negotiations, aiming to secure a competitive position for its pharmaceutical industry.