By Amanda Lee


The U.S. tariff on pharmaceuticals is of "significant concern" to Singapore, said a top trade official of the city-state, which exports billions of dollars of the products to the U.S.

However, a potential exemption in the application of the new duty, set to kick in Oct. 1, could soften the blow on exports, Deputy Prime Minister Gan Kim Yong said.

President Trump last week announced that the U.S. will slap a 100% tariff on branded or patented pharmaceutical products from companies that aren't building a manufacturing plant in America.

Singapore exports about 4 billion Singapore dollars, equivalent to US$3.10 billion, of pharmaceutical products to the U.S. That accounts for about 13% of Singapore's exports to the U.S. and about 19% of its overall pharmaceutical domestic exports.

That said, Singapore's drug exports may not be affected by the levy right away, as many businesses have been preparing for this possibility, Gan said.

"Many of them have actually already have plans to invest in the U.S., to build new capacity, so tariffs may not have an immediate impact on their exports," he told reporters on Saturday.

Singapore's pharmaceutical companies are also continuing to seek clarity from the U.S. administration on the tariff and if they will be eligible for exemption, said Gan, who is also the city-state's minister of trade and industry. That process will likely take some time, he added.

Major pharmaceutical players have already expressed hope that they won't get hit with the new duty. AstraZeneca has said it expects to be exempt as it has major manufacturing operations in the U.S. and is building new ones, while Novartis said it should be unaffected thanks to ongoing construction projects and plans.

Singapore has been in talks with the U.S. on pharmaceutical exports in recent months. Gan said discussions with the Trump administration on pharmaceuticals and semiconductors are ongoing.

After his last meeting with U.S. Commerce Secretary Howard Lutnick on Aug. 19, officials from both sides have been in touch to work out details, Gan said.

"The negotiation, the discussion will take time because there are many details that would need to be worked out," Gan said, adding that he would provide an update on the talks at an appropriate time.


Write to Amanda Lee at amanda.lee@wsj.com


(END) Dow Jones Newswires

09-28-25 2324ET