Singapore will investigate any efforts by companies to route goods through the city-state to circumvent tariffs and import goods made with forced labor, Prime Minister Lawrence Wong said on Sunday. The White House recently stated that the U.S. is losing an estimated $19 billion to $26 billion annually in tariff revenue on goods, largely from China, that are transshipped through third countries to avoid U.S. import duties.
Wong affirmed that Singapore will not be used as a conduit for illegal trade practices. He acknowledged U.S. concerns regarding Chinese goods being routed through Southeast Asia and noted the 12.5% U.S. tariff on Singaporean exports, which the U.S. has cited as a consequence of Singapore not having a law prohibiting the importation of goods produced with forced labor. Wong stated that Singapore takes both issues seriously and will investigate any evidence of wrongdoing.
However, Wong also noted the practical challenges given Singapore's status as a major hub for re-exports and transshipment, with goods passing through from all over the world. He explained that it is not possible to trace and verify the entire supply chain behind every product. Singapore will continue to engage with the U.S. and explain its position.
Wong also commented on the evolving nature of global trade, stating that it is no longer as free as it once was and is increasingly influenced by security considerations. He added that while competition is intensifying, the world is not solely shaped by America and China, highlighting Europe as a major force and India's rapid rise, with many middle powers asserting their interests more actively.
