SINGAPORE: Several pharmaceutical companies have delayed their expansion plans in the United States as they await clarity on potential exemptions from new tariffs, Minister Gan Siow Huang told Parliament on Tuesday, as reported by Singapore Business Review.
The US had temporarily paused the tariffs to allow companies time to negotiate for possible exemptions.
Many Singapore-based pharmaceutical firms planning to build or expand their facilities in the US are now holding off until they receive further guidance on whether their projects will qualify for exemption.
Ms Gan said Singapore is in talks with the US to secure a favourable tariff arrangement for its pharmaceutical exports, adding that most of Singapore’s exports to the US are active pharmaceutical ingredients rather than ready-to-use medications.
In April, Trade and Deputy Prime Minister Gan Kim Yong also mentioned that Singapore is negotiating concessions with the US for its pharmaceutical exports.
Meanwhile, last month, DPM Gan said that new US levies may have no “immediate impact” on the city-state’s pharmaceutical industry, but Singapore may seek a tariff cap similar to the US’ deals with South Korea, Japan, and the European Union. /TISG
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