NDR 2026: S’pore takes US allegations seriously, but can’t trace every product passing through: PM

Singapore addresses US tariff concerns

Prime Minister Lawrence Wong said Singapore will not allow itself to be used as a conduit for illegal trade practices, responding to US allegations that the city-state could be used by Chinese exporters to avoid tariffs. Speaking at the National Day Rally on Aug 23, Wong said Singapore takes the concerns seriously and will investigate any evidence of wrongdoing.

"We will not allow Singapore to be used as a conduit for illegal trade practices," Wong said, as reported by multiple outlets.

His comments follow the US flagging Singapore as being at risk of being used by Chinese exporters to avoid US tariffs, according to a report by Claudia Lim on CNA. The US has also imposed a 12.5% tariff on Singaporean exports, which the US said it levied because Singapore does not have a law prohibiting the importation of goods produced with forced labor, as reported by Nikkei Asia.

The White House said the US is losing annual tariff revenue of about $19 billion to $26 billion on goods, largely from China, that are transshipped through third countries to avoid US import duties, as reported by Nikkei Asia.

Limits to what Singapore can do

While pledging action, Wong acknowledged practical limits. "Goods pass through Singapore from all over the world. We cannot possibly trace and verify the entire supply chain behind every product that passes through our shores," he said, as quoted by Nikkei Asia and The Straits Times.

The Straits Times reported that Wong said Singapore cannot trace and verify the entire supply chain behind every product that passes through its shores, but that Singapore will investigate and take action if there is credible evidence of wrongdoing.

Wong noted that Singapore is a major hub for re-exports and transshipment, making it unrealistic to scrutinize every shipment, as reported by Nikkei Asia.

CNA's report, which included a video segment, emphasized that there are limits to what Singapore can do, while noting that the country will not allow itself to be used as a conduit for illegal trade practices.

Wong said Singapore will continue engaging the US and explaining its position, according to Nikkei Asia.

Broader global tensions

Wong framed the tariff issue as a symptom of deeper global tensions rather than an isolated dispute. "Across the globe, the rules and norms that underpinned stability and prosperity for decades are being overturned," he said, as quoted by The Straits Times.

He attributed this change partly to China's rise as a peer competitor of the US with deep capabilities in many areas, as reported by The Straits Times. Wong said both countries have to live with a new reality where they compete fiercely but avoid outright conflict.

The world is also shaped by other forces, Wong said. "Europe remains a major force. India is rising rapidly. Many middle powers are asserting their interest more actively," he said, as reported by Nikkei Asia.

"Power is becoming dispersed," he said, according to The Straits Times. "Different centres are jostling for influence, competing for markets, technology, resources, and increasingly, over who sets the rules of the game."

Wong said trade is no longer as free as it once was and is increasingly shaped by security considerations, as reported by Nikkei Asia.

He pointed to the Covid-19 pandemic as a wake-up call when suppliers that could usually be counted on stopped delivering goods, followed by Russia's invasion of Ukraine and the Middle East crisis, which exposed vulnerabilities in energy, food and other supply chains, according to The Straits Times.

Forced labor and tariffs

Wong said there should be no place for forced labor and that the better way to tackle it is through international cooperation, not tariffs, as reported by The Straits Times.

He also mentioned "grey-zone tactics" such as economic coercion, foreign interference, disinformation campaigns, and cyber-attacks, which he said contribute to a more dangerous world, according to The Straits Times.

"Each thinks it is acting defensively. But step by step, the conflict can widen far beyond what anyone originally intended," Wong said, as quoted by The Straits Times.

Context: US tariff actions

The US imposed "liberation day" tariffs in April 2025, and later reimposed tariffs after courts ruled them unlawful, as reported by The Straits Times. The 12.5% tariff on Singaporean exports was linked to concerns over forced labor and goods routed through other countries.

Oil prices skyrocketed to above US$100 a barrel in the past few months, The Straits Times noted.

Wong's remarks came during his annual National Day Rally speech, which Nikkei Asia described as his most important political speech each year, outlining key policy announcements.