Singapore has raised concerns with the United States regarding recent trade investigations targeting the city-state, Deputy Prime Minister Gan Kim Yong said on August 27. The discussions took place during Gan’s ministerial visit to the US, where he met with US Trade Representative Jamieson Greer to address investigations under Section 301 of the US Trade Act. This law allows the US to examine and impose penalties on foreign trade practices it considers unfair or detrimental to American interests.
Since July 24, the US has applied a 12.5 percent tariff on certain Singaporean exports, citing Singapore’s failure to enforce bans on imports made with forced labor. Singapore has denied the allegations, emphasizing that it does not use forced labor domestically. Gan stated that officials in Washington acknowledged Singapore’s stance but remained concerned about the country allowing products made with forced labor into its trading network.
Gan highlighted that Singapore is a major trading hub and that addressing forced labor in international supply chains requires collective global efforts. Talks between both sides aim to find a "practical solution" that responds to US concerns while preserving Singapore’s preferential tariff arrangements.
Rules of origin—criteria determining a product’s national source—have been a particular area of focus. Singapore does not condone the misuse of its shipping hubs to evade tariffs, labeling such practices as “cheating.” Gan pointed to a recent case involving a Singapore-registered company charged locally on August 14 for falsely declaring China-made mattresses as Singapore-origin goods to avoid US import duties. He stressed Singapore’s commitment to enforcing trade rules strictly to maintain its credibility and global trust.
The US is also investigating Singapore over allegations of structural excess capacity in its manufacturing sector, contending that Singapore’s production outstrips domestic and global demand. Gan countered this claim, explaining that Singapore’s manufacturing operates at high efficiency, often exceeding 100 percent capacity to meet export demand. He noted the small domestic market limits internal consumption, resulting in trade surpluses. He also reminded US officials that America runs a trade surplus with Singapore.
Beyond trade issues, Gan discussed expanding bilateral cooperation as Singapore and the US approach the 60th anniversary of their diplomatic ties in 2026. With Singapore assuming the ASEAN chairmanship in 2027, he expressed hope for closer collaboration between the US and the region, which will mark 50 years of relations next year. One prospective area for joint efforts is governance of artificial intelligence (AI).
In his remarks at the Economic Society of Singapore’s 70th anniversary dinner, Gan spoke about the impact of AI on the workforce. He cautioned that Singapore’s AI strategy must encompass broad sectors and ensure skilled trades and essential services continue to provide quality jobs. Gan emphasized early identification of roles vulnerable to AI disruption, coupled with targeted training and job support, to facilitate workers’ transition and resilience.
He acknowledged that AI will change many jobs but stressed there is no immediate threat of widespread unemployment. The government aims to manage this transition carefully, fostering job redesign and human-centered roles. Not all jobs in an AI-driven economy will be technical, he noted, highlighting sectors such as healthcare and early childhood education where human interaction and dexterity remain critical.
Gan also underscored the importance of Singapore’s role as a reliable and secure global trade and investment hub. He argued that beyond efficiency and convenience, the city-state must strive to be indispensable by deepening capabilities in high-value manufacturing and trusted services, strengthening partnerships with local enterprises and research bodies, and cultivating local and global talent pools.
Recognizing that Singapore’s small size demands agility, Gan emphasized continual renewal and innovation. Supporting emerging firms, helping existing companies pivot, and building hard-to-replicate advantages are key to maintaining relevance amid shifting global dynamics. “We must keep demonstrating the value Singapore creates for our partners,” he said, stressing the importance of mutually beneficial relationships for long-term resilience.