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Warning Against Overreliance on Tariff Exemptions Amid US Trade Policies

Published August 5, 2026 at 11:17 PM UTC

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While Singapore's efforts to negotiate tariff exemptions, particularly in sectors like pharmaceuticals, are strategic, overreliance on such concessions may expose the economy to future uncertainties. The U.S. has demonstrated a tendency to impose tariffs based on evolving policy considerations, as seen with the recent 12.5% tariff citing forced labour concerns. This underscores the need for Singapore to diversify its trade partnerships and strengthen domestic industries to mitigate potential risks from external policy shifts.