Singapore to seek clarity from US on new 15% Section 122 tariff as Gan warns of ‘unpredictable’ climate

The Singapore Government will engage its US counterparts to seek clarity on the implementation of a potential new 15 per cent tariff on goods entering the United States from 24 February 2026. It will also seek details on the process for potential tariff refunds.

A Ministry of Trade and Industry (MTI) spokesperson said on 22 February 2026 that Singapore is “monitoring the situation closely” and will ask for clarity on how the new Section 122 tariffs will be applied, including the administrative processes around refunds.

The tariff uncertainty was triggered by a US Supreme Court ruling on 20 February 2026. In a 6–3 decision, the court held President Donald Trump had exceeded his constitutional authority by imposing sweeping global tariffs under a 1977 economic emergency powers law.

After the ruling, the White House moved to impose a time-limited import surcharge under Section 122 of the Trade Act of 1974, an authority allowing temporary import restrictions to address serious balance-of-payments problems.

The White House proclamation issued on 20 February 2026 set out a global tariff of 10 per cent on imports into the US for up to 150 days, due to begin from 12.01am on 24 February 2026.

On 21 February 2026, President Trump said the tariff rate would be raised to 15 per cent. Reuters reported the announcement came a day after the initial 10 per cent move and described Section 122 as a rarely used mechanism.

Speaking at a media doorstop on Sunday, 22 February 2026, Deputy Prime Minister Gan Kim Yong said the latest developments were “a stark reminder” that Singapore is operating in a “very unpredictable and uncertain” environment.

Gan, who is also Minister for Trade and Industry, said details on implementation were still unclear, but argued Singapore’s relative competitiveness would not be affected if the tariff were applied across the board. He said Singapore would still have opportunities to continue doing business with the US.

He cautioned, however, that higher costs would likely slow investments and trade flows. His remarks came after President Trump raised the global duty to 15 per cent from 10 per cent, according to contemporaneous reporting.

MTI noted that certain types of goods are exempt from the Section 122 tariffs, including energy and energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics, certain aerospace products, and metals used in currency and bullion.

MTI added that semiconductors and pharmaceuticals are not subject to the Section 122 tariffs because they may be the subject of possible Section 232 tariffs that have not yet been imposed.

On trade flows, MTI cited US Census Bureau data showing the US ran a goods trade surplus with Singapore of US$3.6 billion (about S$4.6 billion) in 2025, compared with US$1.9 billion in 2024.

Domestically, the Government said it will work with tripartite and industry partners through the Singapore Economic Resilience Taskforce (SERT) to provide timely information to businesses and workers, and to gather feedback on how they are affected.

SERT was launched in April 2025 and is chaired by Gan. MTI encouraged businesses to tap Budget 2026 measures, including a Corporate Income Tax rebate and enhanced support for companies seeking to expand overseas.

Gan’s taskforce role featured prominently in GE2025 narratives about steady leadership in an uncertain global economy.

Yet the current episode illustrates that even well-organised domestic responses may be constrained by external policy volatility, leaving Singapore and its firms to adapt to US tariff changes rather than shape them.