U.S. President Biden signs executive order, reaching tariff agreement with Singapore, tax rate set at 15% — Reuters

U.S. President Joe Biden signed an executive order to implement a trade protocol with Singapore. According to a report by Reuters on Thursday evening, the protocol imposes tariffs of up to 15% on most imported goods from Singapore, including electronics and precision instruments.

The White House added that Singapore is actively promoting plans to increase the procurement of U.S. agricultural products by 75%.

The 15% tariff will be retroactively applied to most goods exported since August 7, when the tariffs on multiple trading partners began to take effect under the U.S. President. The preferential measures for aerospace and automobile imports will be implemented within a week after Thursday.

Financial Market Reaction

At the time of the announcement, the USD to SGD exchange rate fell slightly by 0.01%, reported at 1.3448.

Common Questions Related to Tariffs

What is the difference between taxes and customs duties?

Although tariffs and taxes can generate revenue for the government to fund public affairs, there are some differences between the two. Tariffs are usually paid in advance at the point of import, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are borne by importers.

Is the tariff more beneficial than detrimental or more detrimental than beneficial?

Economists hold differing views on the use of tariffs. Some scholars believe that tariffs are crucial for protecting domestic industries and addressing trade imbalances, while others see them as harmful tools that could raise prices in the long term and lead to detrimental trade wars due to retaliatory tariffs.

What is President Joe Biden's tariff policy?

On the eve of the presidential election in November 2024, Joe Biden made it clear that he plans to use tariffs to support the U.S. economy and manufacturing. According to data from the U.S. Census Bureau, in 2024, Mexico, China, and Canada accounted for 42% of total U.S. imports. Among them, Mexico became the largest exporter with an export value of $466.6 billion. Therefore, Biden intends to focus on these three countries when imposing tariffs. He also plans to use tariff revenues to reduce personal income tax.

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