Singapore faces proposed 12.5% US tariff over forced labour rules under new USTR trade investigation

Singapore could face a new 12.5 per cent tariff on exports to the United States after Washington proposed fresh trade penalties against economies it says have failed to prohibit and effectively enforce restrictions on goods produced with forced labour.

The proposed measure was announced by the Office of the United States Trade Representative (USTR) on 2 June 2026 as part of a broad Section 301 trade action covering 60 economies.

The additional duties are not expected to take effect immediately and remain subject to a public consultation process and hearings scheduled for July.

Under the proposal, Singapore is classified among 54 economies that the USTR said have failed both to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.

USTR targets 60 economies

In findings released alongside a comprehensive investigative report, the USTR concluded that all 60 economies examined had failed to adequately address trade involving goods produced with forced labour.

According to the agency, six economies — Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan — have established prohibitions but failed to effectively enforce them.

The remaining 54 economies, including Singapore, Malaysia, Australia, Japan, South Korea, the United Kingdom, Switzerland and New Zealand, were found to have neither imposed nor effectively enforced such prohibitions.

“Therefore, all of the investigated economies have failed both to impose a forced labour import prohibition and to effectively enforce such a prohibition,” the USTR said.

The agency determined that these failures were “unreasonable” and burdened or restricted US commerce, making them actionable under Section 301(b) of the Trade Act of 1974.

Proposed tariff rates

As a result of the findings, the USTR has proposed additional duties on imports from the affected economies.

Economies deemed partially compliant would face a proposed 10 per cent tariff.

All other economies, including Singapore, would be subject to a proposed 12.5 per cent additional duty on products entering the United States.

The USTR also proposed a textile mechanism that would allow a specified volume of apparel and textile imports from certain economies to enter the US at a reduced Section 301 tariff rate.

In its report, the agency stated that Singapore's “acts, policies and practices” relating to the failure to impose and effectively enforce a forced labour import prohibition were unreasonable and restricted US commerce.

The report said: “For the foregoing reasons, the results of this investigation indicate that the acts, policies and practices of Singapore related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.”

Singapore previously rejects allegations

Singapore has previously rejected the USTR's characterisation.

In April 2026, the Ministry of Trade and Industry (MTI) said there was no evidence linking Singapore to supply chains involving goods associated with forced labour entering the United States.

The ministry also said the Republic was not aware of any goods produced with forced labour being exported from Singapore to the US.

The latest proposal represents a further escalation in trade tensions between Washington and a wide range of trading partners as the Trump administration seeks new legal avenues to maintain its tariff agenda.

Part of wider tariff strategy

The forced labour investigations form part of a broader series of trade actions initiated after the US Supreme Court struck down the legal basis of President Donald Trump's reciprocal tariffs in February 2026.

Following that ruling, Trump imposed a 10 per cent global tariff under Section 122.

That measure is scheduled to expire in July 2026.

Singapore is also separately facing USTR investigations concerning alleged structural excess capacity and production practices in selected manufacturing sectors.

The USTR initiated the forced labour investigations on 12 March 2026 under Section 302(b) of the Trade Act, which allows the Trade Representative to launch investigations into foreign government practices deemed harmful to US commerce.

Agency cites unfair competition concerns

The USTR said failures to prevent imports linked to forced labour create unfair competitive advantages for producers using such labour practices.

According to the agency, these failures undermine efforts to eliminate forced labour globally, distort market conditions, reduce the profitability of companies that comply with labour standards and facilitate the circumvention of existing import restrictions.

US Trade Representative Jamieson Greer said the issue had become a significant concern for American workers and manufacturers.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” Greer said.

“We will no longer tolerate this disparity.”

Greer added that while some trading partners had taken initial steps to address forced labour concerns through trade agreements and other commitments, further action was required.

Consultation process begins

The proposed tariffs remain subject to public review before any final decision is made.

Interested parties seeking to appear at public hearings must submit requests and summaries of testimony by 22 June 2026.

Written comments on the proposed measures are due by 6 July.

The USTR is scheduled to hold public hearings on 7 July before determining whether to proceed with the proposed tariff measures.