Singapore will investigate any tariff evasion, but must be realistic given volume of trade, PM says

Business Recorder reported that Singapore Prime Minister Lawrence Wong has pledged to investigate any attempt by businesses to send merchandise across the city-state in order to dodge tariffs or import items produced through forced labour. Wong made the remarks on Sunday at the annual National Day Rally, an address where he usually unveils major policy announcements. He stressed that Singapore will not let its trade system be exploited for illegal commerce.

According to the White House, the US forgoes roughly $19 billion to $26 billion of yearly tariff income, mostly on Chinese goods rerouted via other countries to sidestep duties. Wong acknowledged Washington's worries over Chinese merchandise moving through Southeast Asian states. He also raised the 12.5% US levy on Singapore's exports, which Washington linked to the absence of a statute blocking products made through forced labour. Singapore, he said, treats both issues seriously.

Wong argued that it is impossible to check every item crossing its ports, given its role as a major re-export and transshipment hub. He added that the country plans to keep dialogue open with Washington to make its stance clear. He said trade is less open than before and shaped by security issues, while Europe, India and middle powers are gaining weight.