US imposes 12.5% tariff on Singapore exports over forced labour concerns

The United States has imposed a new 12.5% tariff on approximately one-third of Singapore's exports, citing concerns over alleged violations of forced labour bans. The tariff, effective from July 24, 2026, follows an investigation by the Office of the US Trade Representative (USTR) into forced labour practices in supply chains. Singapore's Ministry of Trade and Industry (MTI) has rejected the allegations, emphasizing the nation's strong enforcement against illegal labour practices and its commitment to international cooperation on this issue. The tariff affects a significant portion of Singapore's exports to the US, excluding some key products. Singaporean businesses are advised to diversify their markets and strengthen supply chain resilience in response to the new levy. The MTI has stated its intention to engage with the USTR to explore options for resolving the matter, highlighting Singapore's comprehensive enforcement framework against forced labour within its borders. This development underscores the importance of adhering to international labour standards and the potential economic implications of non-compliance.