US tariffs have not affected Singapore import prices; no direct impact on inflation expected: Gan Siow Huang

SINGAPORE: Tariffs imposed by the United States have so far not impacted Singapore’s import prices, Minister of State for Trade and Industry Gan Siow Huang said in parliament on Thursday (Feb 12).

Import prices fell in 2025, and this decline has helped to lower headline inflation and core inflation - which excludes accommodation and private road transport - to 0.9 per cent and 0.7 per cent respectively last year.

Singapore has been subjected to a baseline 10 per cent tariff on goods entering the United States since April last year. Other sectoral tariffs such as on steel and aluminium have also been imposed on Singapore.

Ms Gan added that tariffs and the corresponding decline in exports to the US are not expected to have a direct impact on Singapore’s inflation.

“This is because the tariffs are paid for by the US importers,” she said.

However, Ms Gan warned that there could be an indirect impact if higher prices in the US lead to an increase in the prices of its exports, including to Singapore, in the future.

Responding to a question by Member of Parliament (MP) Yip Hon Weng (PAP-Yio Chu Kang) on the indicators used to assess the disproportionate effects of inflation on low-income households, Ms Gan said the ministry looks at a range of indices and indicators to understand how different income groups are affected.

"We will continue to closely monitor our import prices and inflation rates and the corresponding impact on Singaporeans, especially those from lower household income groups," Ms Gan said. 

Last month, the Monetary Authority of Singapore (MAS) raised inflation forecasts for 2026 and kept monetary policy unchanged for the third consecutive time.

Core inflation and headline inflation for the year is expected to be between 1 per cent and 2 per cent, up from the previous forecast of 0.5 per cent to 1.5 per cent.