Singaporean Pharma Firms Eye U.S. Expansion to Dodge Tariffs

Singaporean pharma firms are considering U.S. expansion to avoid tariffs. The move could boost exports and help the industry navigate global supply chain challenges.

, and Administrator

2025 October 23 . 8:05 AM

1 min read

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Singaporean Pharma Firms Eye U.S. Expansion to Dodge Tariffs

Singaporean pharmaceutical companies are exploring expansion opportunities in the U.S. to potentially qualify for tariff exemptions. Despite a free trade agreement, Singapore's exports to the U.S., including pharmaceuticals, face a 10% baseline tariff. The sector accounts for around 13% of all local exports to the U.S., with exports valued at approximately SGD4 billion ($3.10 billion) annually.

Pharmaceuticals are a significant contributor to Singapore's export portfolio, with branded drugs making up the majority of these exports. While the U.S. is a key market, Singaporean companies face challenges due to the 10% baseline tariff, which is not waived under the existing free trade agreement. Companies are seeking clarification on whether they qualify for an exemption.

Meanwhile, broader sectoral tariffs threaten demand for other Singaporean products, such as semiconductors and consumer electronics. This could indirectly impact pharmaceutical exports, as these industries are interconnected in global supply chains.

Singaporean pharmaceutical companies are actively considering U.S. expansion plans to potentially circumvent tariffs. However, WuXi AppTec, a Singapore-linked company, has plans to adjust its U.S. footprint but no clear indication of expansion for tariff exemption. The industry awaits clarification on tariff exemptions, as pharmaceuticals play a significant role in Singapore's export landscape.