Singapore Deputy PM Gan Kim Yong: Singapore May Be Shielded from U.S. Drug Tariffs

Singapore Deputy Prime Minister Gan Kim Yong said that new U.S. tariffs on pharmaceuticals may not “immediately impact” Singapore’s drug companies.

He added that Singapore may seek to cap tariff rates, similar to agreements Washington has with other countries.  

Speaking to reporters on Saturday, Gan, who also serves as Minister for Trade and Industry, noted that most Singapore pharmaceutical firms have established or are planning production capacity in the U.S.

This could exempt them from the upcoming U.S. drug tariffs, and companies are seeking confirmation of their exemption status.  

Gan also mentioned ongoing discussions with the U.S. government on semiconductor issues but declined to elaborate due to the confidential nature of the talks.  

“The U.S. models with South Korea, Japan, and the EU serve as precedents,” Gan said in response to questions about tariff caps. “Whether it will be identical depends on discussions and negotiations between the U.S. and Singapore.”  

Singapore is initially spared the harshest tariffs, facing only a 10% baseline tariff, while some Southeast Asian countries face tariffs as high as 40%.  

Barclays economists warned in a research report that Singapore remains vulnerable, whether through direct drug exports or intermediate products shipped to other countries. Barclays estimates that if tariffs are imposed, Singapore’s effective tariff rate would be second only to Vietnam’s 20%.