Singapore PM Vows to Probe Tariff Evasion, Cites Trade Realities

Singapore will investigate any attempts by companies to use the city-state to dodge tariffs or import goods made with forced labour, Prime Minister Lawrence Wong said on Sunday. Speaking at the annual National Day Rally, Wong stressed that Singapore will not allow itself to be used as a conduit for illegal trade practices.

His remarks come after the White House last week estimated that the United States loses $19 billion to $26 billion annually in tariff revenue due to goods, largely from China, being transshipped through third countries to avoid U.S. import duties. Washington has also pointed to concerns about Chinese goods routed through Southeast Asia, and it has imposed a 12.5% tariff on Singapore exports because Singapore lacks a law banning imports made with forced labour.

Wong said Singapore takes both issues seriously and will act on any evidence of wrongdoing. However, he noted the practical limits of oversight, given the city-state's role as a major hub for re-exports and transshipment. "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.

The prime minister said Singapore will continue engaging the U.S. to explain its position. He also observed that trade is no longer as free as it once was, increasingly shaped by security considerations. While competition between major powers intensifies, Wong argued that the world is not defined solely by America and China. "Europe remains a major force. India is rising rapidly. Many middle powers are asserting their interest more actively," he said.