Singapore Seeks U.S. Concessions on Pharmaceuticals and AI Chips Amid Trade Tensions

Singapore is currently in talks with the United States to secure concessions on pharmaceutical exports while working to maintain its access to advanced AI chips, according to Trade and Deputy Prime Minister Gan Kim Yong.

The negotiations come as U.S. protectionist policies tighten, including the imposition of a 10% tariff on Singaporean goods, despite the two countries’ existing free trade agreement. Pharmaceuticals, which make up over 10% of Singapore’s exports to the U.S., are a key focus in the discussions.

In addition to protecting its pharmaceutical trade, Singapore is aiming to ensure ongoing access to high-end AI chips, critical for the country’s tech industry growth. The discussions are taking place amid heightened scrutiny from Washington following an incident involving the unauthorized export of servers containing Nvidia chips from Singapore to Malaysia.

Singapore has reiterated its commitment to upholding strict export controls and has assured the U.S. that it will not undermine American trade restrictions.

Meanwhile, Singapore’s Monetary Authority has warned that new U.S. tariffs could trigger a severe economic shock, with officials lowering the nation’s 2025 GDP growth forecast to between 0% and 2%.

These negotiations are taking place just days ahead of Singapore’s general election on May 3, where economic challenges and rising living costs are expected to be key issues for voters.