The headache hitting Singapore right now, as new U.S. tariffs could hit the brakes on $3.1 billion worth of pharmaceutical exports. The situation kicked off last week when U.S. President Donald Trump announced on September 25, via his Truth Social platform, a whopping 100% tariff on branded and patented drugs starting October 1, 2025.
The goal? Push companies to build factories stateside. Singapore, despite a free trade deal locked in since 2004, suddenly finds its exports tangled in this net. Deputy Prime Minister Gan Kim Yong, who's also the trade minister, broke the news to reporters in Singapore on September 27. He pointed out that pharma makes up 13% of the country's shipments to the U.S., that's a big chunk, around $4 billion in total value, mostly high-end branded meds.
Singapore's pharma scene is a powerhouse, with labs active and factories churning out everything from cancer treatments to everyday pills. These exports not only boost Singapore's revenues but also help keep medicine shelves worldwide stocked at affordable prices. Broader worries appear too, semiconductors etc, which together with drugs account for 40% of exports to America, might catch the next tariff wave.
Gan's already eyeing trips to Washington, like the one he took in July, to hash out exemptions. Many local firms have U.S. expansion plans in motion, which could dodge the hit if the rules are flexible enough. Still, uncertainty hangs heavy; the baseline 10% tariff from April is already making small dents in the edges.
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