DPM Gan’s US tariff negotiation draws scrutiny as PM Wong says Singapore can ‘live with’ 10% levy

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Deputy Prime Minister Gan Kim Yong’s negotiations with the United States have come under fresh scrutiny after Prime Minister Lawrence Wong indicated that Singapore could accept a 10% tariff imposed by the US, despite the Republic’s earlier strong objections.

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Speaking at the “Global-City Singapore: SG60 and Beyond” conference on 29 July 2025, co-hosted by the Institute of Policy Studies (IPS) and the Singapore Business Federation (SBF), PM Wong addressed the recent US tariff declaration and sought to reassure businesses and investors.

Wong acknowledged that while the 10% levy is not Singapore’s preferred outcome, it remains manageable.

“We can live with it, and we can still do business,” Wong said. He added that there are still opportunities for trade and investment with the US.

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Singapore was included in the so-called “Liberation Day” tariffs announced by the US on 2 April, 2025.

The Republic faces a 10% duty on selected exports — among the lowest in the new tariff bands. Singapore had previously enjoyed tariff-free access for most goods under longstanding free trade arrangements.

Wong also noted that the 10% rate is relatively modest compared to higher tariffs faced by other countries.

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He added that Singapore must remain realistic about shifts in global trade dynamics.

Wong reiterated that Singapore would continue engaging its partners while preparing businesses to adapt.

“We must be realistic and take the world as it is. But we are not passive bystanders. We can shape our own destiny,” he said.

Gan Kim Yong: US remains non-committal on tariff flexibility

Gan, who also spoke at the conference, confirmed that the US remains “non-committal” about adjusting the 10% tariff.

He said Singapore made clear its hope for future reviews to lower or remove the levy but acknowledged that Washington offered no immediate concessions during his visit from 20 to 26 July.

Gan explained that his meetings were aimed at keeping lines of communication open and ensuring that Singapore’s interests remain on the agenda for any future US trade policy adjustments.

During his trip to Washington, Gan was unable to meet US Secretary of Commerce Howard Lutnick, which meant detailed discussions on pharmaceutical tariffs could not take place.

However, he met other senior officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.

Their discussions focused on sustaining the long-standing, mutually beneficial economic relationship between Singapore and the US, and exploring potential collaboration in areas such as the digital economy.

Absence of a breakthrough raises questions

However, the lack of a breakthrough in Gan’s recent trip has raised questions among the public.

Critics online have highlighted what they see as a contradiction between the government’s pre-election messaging and the current outcome.

During the campaign, the People’s Action Party (PAP) warned that Singapore could face serious economic harm if key ministers were not re-elected.

Wong himself cautioned in Parliament on 8 April that the tariffs could deal a heavy blow to businesses, workers, and the wider economy.

At the time, he described the 10 per cent tariff as a potential “seismic change in the global order”, warning that the rules-based trading system could be under threat.

He pointed out that Singapore already imposes zero tariffs on US imports and maintains a trade deficit with the US, arguing that if the tariffs were genuinely reciprocal, Singapore should be exempt.

During the same parliamentary session, Wong announced the formation of a special task force chaired by Gan to help businesses and workers adjust to the new economic landscape.

This move reinforced Gan’s image as a central figure managing the negotiations.

Public questions ‘taskforce man’ promise during GE

Following the visit, some netizens asked whether the government has simply accepted the US decision without securing any tangible concessions.

Commenters noted that prior to the General Election earlier this year, the PAP had presented Gan as the “taskforce man” who would secure better terms for Singapore in talks with the US.

Posts on Reddit and comments on platforms such as Mothership and The Business Times’ Facebook page questioned the lack of concrete results from Gan’s latest trip.

Some also asked whether Singapore’s diplomatic leverage has weakened or if the government had overstated its ability to influence US policy.

One widely shared satirical remark summed up this sentiment: “Before election: ‘We need to set up a Taskforce to navigate through this uncertainty and the possibility of a recession.’ After election: ‘We can live with it.’”

Broader economic context and alternative views

Some comments offered broader context, arguing that the tariff outcome was “inevitable” because developed economies like Singapore cannot compete in low-margin manufacturing sectors such as clothing and plastics.

A user suggested that tariffs are the fastest way for the US to address its trade deficit, though the user acknowledged the risk of escalating trade tensions.

Others argued that there was “nothing to negotiate”, pointing to former US President Donald Trump’s unpredictable approach to trade.

One commenter described Trump as a “fickle king” who would demand further concessions with every deal. Such users implied that Singapore’s best option might be to endure the tariff and adapt.

A number of commenters also suggested that Singapore should now deepen ties within ASEAN and strengthen links with China to reduce its reliance on the US.

Some argued that the US “has no business being in South East Asia anyway”, and urged policymakers to rebalance trade partnerships accordingly.

The post DPM Gan’s US tariff negotiation draws scrutiny as PM Wong says Singapore can ‘live with’ 10% levy appeared first on The Online Citizen.



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