United States Extends Congratulations to Prime Minister Wong and the People's Action Party Following Success in GE2025 Elections
"Hey there!"
Congrats, Singapore! The United States has offered hearty congratulations to Singapore's Prime Minister, Lawrence Wong, and the ruling People's Action Party (PAP) following their massive win in the General Election held on May 3.
US Secretary of State Marco Rubio revealed the Trump administration's excitement about cooperating closely with the new government, reiterating the long-standing partnership between both nations. In his statement, Rubio pointed out that the partnership has existed for nearly 60 years and shared their dedication to a peaceful, free, and prosperous Indo-Pacific region.
The PAP clinched an impressive 87 out of 97 seats in the election, increasing their vote share from 61.2 percent to 65.57 percent, and even managing to take victory in tightly contested wards. Not to mention, they also boosted the margin of victory in most constituencies.
In this election, Prime Minister Wong takes the reins for the first time. Deputy Prime Minister Gan Kim Yong is the one leading the charge concerning the impact of US tariffs on Singapore's economy.
In April, US President Donald Trump articulated sweeping tariffs on all imports, featuring a foundational 10% rate for countries like Singapore. Over three dozen other trading partners, including China, experienced heavier tariffs. Although most of the substantial "counter-tariffs" are currently paused for 90 days, the underlying 10% tariff remains.
Following a conversation with US Commerce Secretary Howard Lutnick, Gan expressed his hope for creative solutions to some critical exports from Singapore, especially pharmaceuticals, which amount to more than 10 percent of the country’s exports to the US. The pharmaceutical sector is of paramount significance to Singapore, as US-bound exports represent a crucial part of their economy.
Artificial intelligence chips were another area of discussion between the two officials, as Singapore seeks to protect its companies’ access to this critical technology while the US grapples with export control concerns.
Insight: Singapore’s pharmaceutical exports to the U.S., a significant portion of the nation's total exports, face pressure due to a 10% baseline tariff that has been in effect since 2019, with negotiations so far failing to secure reductions. Efforts to negotiate alternative concessions persist as the US remains adamant about the 10% tariff baseline rate being inviolable. Trade disputes present additional challenges to Singapore’s already taxed economy, particularly with a recent GDP contraction (0.8% quarter-on-quarter in Q1 2025) and an annual growth forecast downgraded to 0-2%.
In the face of ongoing trade disruptions, Singapore is focusing on obtaining exemptions in specific sectors and upholding U.S. export control standards to maintain their role in global pharmaceutical supply chains. The country is also committed to discouraging companies from circumventing foreign export controls to ensure a stable and secure global market.
- The People's Action Party (PAP) in Singapore, led by new Prime Minister Lawrence Wong, is grappling with the impact of US tariffs on their economy, particularly in sectors such as pharmaceuticals, which account for more than 10% of the country's exports to the US.
- In a conversation with US Commerce Secretary Howard Lutnick, Deputy Prime Minister Gan Kim Yong expressed his hope for innovative solutions to address the critical exports from Singapore, emphasizing the significance of the pharmaceutical sector to the country's economy.
- Singapore is actively seeking exemptions in specific sectors and adhering to US export control standards to maintain its role in global pharmaceutical supply chains, despite the pressure from a 10% baseline tariff that has been in effect since 2019.
- The Trump administration's sweeping tariffs on all imports, featuring a foundational 10% rate for countries like Singapore, have posed additional challenges to Singapore's already taxed economy, which recently experienced a GDP contraction of 0.8% quarter-on-quarter in Q1 2025 and saw its annual growth forecast downgraded to 0-2%.
- In the realm of policy-and-legislation, politics, and general-news, the ongoing trade disputes between the US and Singapore, particularly regarding tariffs, are a hot topic as both nations strive to protect their interests and strengthen their long-standing partnership.
