Singapore disputes US claim of US$27b surplus, says data shows trade deficit amid Section 301 probe

SINGAPORE: The Ministry of Trade and Industry has disputed claims by the United States that the republic maintains a bilateral trade surplus.

This rebuttal follows a trade investigation launched by Washington into excess industrial capacity across 16 major global trading partners.

In a statement issued on 12 March 2026,MTI clarified that Singapore actually runs a trade deficit with the United States.

This contradicts a recent notice from the Office of the United States Trade Representative.

The United States Trade Representative (USTR) recently initiated Section 301 investigations into 16 economies.

These include China, the European Union, Japan, India, and Singapore. The probe focuses on structural excess capacity and production practices alleged to harm American manufacturing.

US Trade Representative Jamieson Greer stated on 11 March 2026 that the unfair trade practices investigation could result in new tariffs. These duties may be imposed against the European Union, South Korea, Mexico, and other named nations by this coming summer.

According to MTI, the USTR Federal Register Notice highlighted Singapore as having a bilateral trade surplus in goods and services.

The American report valued this surplus at US$27 billion for the 2024 calendar year.

However, MTI cited data from the US Bureau of Economic Analysis (BEA) which suggests the opposite.

This data indicates Singapore had a bilateral goods trade deficit of US$1.7 billion and a services trade deficit of US$25.1 billion in 2024.

These figures result in a total trade deficit with the United States of approximately US$27 billion. The ministry noted a significant discrepancy between the USTR claims and the official data provided by other American government agencies.

The USTR notice further suggested that manufacturing capacity has continued to expand in the city-state despite a decline in industrial occupancy rates. This assessment was also challenged by Singaporean officials in their formal response to the investigation.

MTI stated that industrial space occupancy rates remain healthy at approximately 90 per cent.

The ministry added that these levels have remained consistently high. They noted that land is a scarce resource and industrial land allocations have decreased.

Information regarding these statistics has already been provided to the USTR.

MTI confirmed it will continue engaging with its American counterparts to seek further clarification on the trade data discrepancies and the nature of the Section 301 probe.

Jamieson Greer previously explained to reporters that the investigation targets economies exhibiting structural excess capacity. This is often evidenced by large, persistent trade surpluses or underutilised manufacturing facilities in various sectors, according to the United States government.

The official USTR notice specifically alleged that Singapore possessed excess global capacity in semiconductors. This claim was made despite the reported trade deficit. Similarly, Norway was cited for excess capacity in fuels and seafood exports.

Data from the US Census Bureau cited by MTI in February 2026 shows a different trend. It indicated the United States ran a goods trade surplus of US$3.6 billion with Singapore in 2025, an increase from US$1.9 billion in 2024.

The push for new investigations comes as Washington seeks to rebuild tariff pressure. This follows a United States Supreme Court decision last month that dismantled significant portions of the tariff programme previously established by President Donald Trump.

President Trump subsequently announced a global tariff rate of 10 per cent.

This figure was later increased to 15 per cent following the legal setback in the courts. These measures are designed to protect domestic American industrial interests.

Deputy Prime Minister Gan Kim Yong commented on the situation last month.

Gan Kim Yong noted that Singapore is likely to be affected by the new 15 per cent United States tariff given the current trade climate.

Despite the trade tensions, the domestic economy is expected to see growth. Current projections suggest an expansion of 2 per cent to 4 per cent this year.

This is an increase from the previous forecast of 1 per cent to 3 per cent.