Singapore's Trade Minister Gan Kim Yong has told parliament that about one-third of the country’s exports to the US, worth S$9.5bn (US$7.40bn), will be affected by a new US tariff.

Addressing parliament, as reported by Reuters, Gan said the 12.5% levy, which took effect on 24 July, would affect shipments such as optical instruments and chemical products.

The US introduced new tariffs of 10% and 12.5% covering goods from 60 trading partners, including the EU and China.

The US administration said the move was based on concerns that those economies had not taken sufficient action to stop imports associated with forced labour.

Gan said: “Importantly, none of the 60 economies, including those that already have such prohibitions in force, received a full exemption from the tariff”, adding that other trading partners such as the EU and China had been subject to a similar measure.

The new tariffs were introduced after a temporary 10% tariff applied worldwide expired.

Several product categories were excluded from the latest tariffs, including energy and energy-related goods, selected electronics and aerospace products, as well as semiconductors and pharmaceuticals.

Gan said the US had argued that Singapore does not have laws prohibiting the import of goods produced with forced labour and has not signed an Agreement of Reciprocal Trade with Washington that would require it to put such legislation in place.

Singapore has said there is no evidence connecting the country to trade in goods made with forced labour.

Gan said Singapore would need to “consider carefully” the implications of entering into such an agreement with the US, noting that it could involve “commitments beyond an import prohibition, including export controls or restrictions relating to third countries”.

He also said Singapore’s total annual trade in goods and services is about S$2.5tn, of which S$1.4tn is goods, meaning any import prohibition would have “significant implications” for the country.

Statistics from the Office of the US Trade Representative, cited in the report, showed the US recorded a trade surplus with Singapore of $3.6bn in 2025.

Last month, the US also imposed tariffs on Canada. US President Donald Trump signed three proclamations bringing in an additional 50% tariff on a range of Canadian goods.