Singapore Seeks Concessions in Pharma Trade Amid AI Chip Concerns

Singapore negotiates with the U.S. for pharmaceutical export concessions while maintaining access to AI chips. Trade and Deputy PM Gan Kim Yong confirms talks with U.S. Commerce Secretary Howard Lutnick. Amidst export disputes, Singapore braces for potential economic slowdown with an upcoming general election.

Singapore is in discussions with the U.S. to secure trade concessions for pharmaceutical exports, while also ensuring continued access to advanced AI chips from the American market. According to The Straits Times, Trade and Deputy Prime Minister Gan Kim Yong revealed these negotiations following a conversation with U.S. Secretary of Commerce Howard Lutnick.

Gan elaborated on Singapore's export control system to Secretary Lutnick, assuring that the city-state collaborates with U.S. counterparts within legal boundaries. This dialogue comes in light of U.S. President Donald Trump's tariff threats on pharmaceuticals, which constitute over 10% of Singapore's U.S. exports.

Despite a bilateral free trade agreement, Singapore faces a 10% U.S. levy and is bracing for economic challenges, including a potential recession. The nation has lowered its GDP forecast to 0%-2% after recent contractions, as it prepares for a general election with economic concerns at the forefront.

(With inputs from agencies.)