US wants to explore ‘creative solutions' on trade with Singapore, says DPM Gan
Mr Gan, who is also Minister for Trade and Industry, told reporters that he spoke to his US counterpart, Commerce Secretary Howard Lutnick, on Friday when they identified key areas to address.
'Secretary Lutnick has emphasised several times that he's prepared to start this discussion with us, because we are a friend, an important trading partner, and because the US trusts Singapore,' he told reporters at One Punggol.
Mr Gan chairs the Singapore Economic Resilience Taskforce, looking into the impact of the tariffs on the country.
He is also the anchor minister for the People's Action Party (PAP) team contesting Punggol GRC in this General Election.
He said he decided to take some time off the campaign trail to take the call, as it was 'an important discussion' to have and one which turned out to be 'very good'.
Mr Trump on Apr 2 announced sweeping tariffs on all imports, with a baseline rate of 10 per cent on countries that include Singapore. Dozens of other trading partners, including China, were slapped with higher tariffs.
While there is now a 90-day pause on most of the hefty "reciprocal tariffs", the baseline 10 per cent duty kicked in on Apr 5.
Mr Gan said Mr Lutnick explained during their call that the 10 per cent baseline tariff is an umbrella one which is 'not likely to be subject to negotiation'.
'However, he also pointed out that Singapore being an important trading partner and a friend, he would like to explore creative solutions to see how we can strengthen the bilateral trade between Singapore and the US, particularly with regard to critical exports from Singapore to US, exports that are important to us,' he said.
This could include products such as pharmaceuticals, which is something 'very important' to Singapore, contributing over 10 per cent of the country's exports to the US, said Mr Gan.
Another area discussed is artificial intelligence chips.
'It's an area that we are very concerned about, and we want to make sure that our companies will continue to have access to this critical technology. It's important for us in areas such as data centres,' said Mr Gan.
He said the US is also concerned about the export controls on such chips, not just in Singapore.
Mr Gan therefore took the opportunity to explain to his US counterpart about Singapore's export control system and how both countries have been working together on this front.
'We also do not condone companies taking advantage of their presence in Singapore to undermine export controls by other countries,' said the deputy prime minister.
TIMELINE NOT YET DECIDED
Mr Gan told reporters that his US counterpart emphasised the trust between Singapore and the US multiple times in their conversation.
While a timeline on the implementation of the tariff concessions has not been decided, Mr Lutnick has 'made it quite clear that he doesn't want to drag on the discussion', said Mr Gan.
'He actually wanted for us to speed up our discussion and negotiation between the two countries, because ... America has many countries to negotiate with, and if each country takes a long time, I think it's not going to be productive,' he said.
Mr Gan added that as a very small country, Singapore has an advantage as it can 'move very quickly and we're also very nimble' in responding to any changes.
'We also have a very strong team of officials who are able to negotiate the details, guided by all the political office holders who provide guidance and direction,' he added.
His team first has to finalise the scope of negotiations and then come up with an implementation plan, before a specific timeline can be set, said Mr Gan.
The minister also apologised to residents of Punggol GRC for taking time off the campaign trail to handle this matter.
As for whether the issue will impact voters' choices, Mr Gan said: 'I think the voters will have to evaluate what are the factors they will consider in their voting decision.
'But as far as I'm concerned, I must focus on doing what is the right thing for Singapore, and then I will just leave it to the voters to decide on the basis they want to vote.'
At a rally on Saturday, Mr Gan spoke about his ongoing talks with his US counterparts on the tariffs.
'They are willing to enter into talks with us because of the long-standing partnership the PAP government has with the US administration as well as the US leaders,' he had said.
'They know us and they trust us … It is not a done deal, but it is a good start. There's still a lot more to do, and we intend to pursue this rigorously to create more opportunities for Singapore and Singaporeans.'
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