(March 13): Singapore said it ran a trade deficit with the US in 2024, disputing figures published by Washington that showed the city-state posted a surplus and challenging suggestions that it is contributing to global manufacturing overcapacity.
The dispute surfaced after the Office of the US Trade Representative (USTR) announced this week that it had launched investigations under Section 301 of the Trade Act of 1974 into the acts, policies and practices of 16 economies, including Singapore. The probes are focused on structural excess capacity and production in manufacturing sectors.
In a Federal Register notice, the USTR highlighted Singapore as having a bilateral trade surplus with the US in both goods and services amounting to US$27 billion ($34.5 billion) in 2024.
Singapore’s Ministry of Trade and Industry (MTI) said in a statement on Thursday that isn’t borne out by the US’s own data. Citing figures from the US Bureau of Economic Analysis, the ministry said Singapore had a US$1.7 billion goods trade deficit and a US$25.1 billion services trade deficit with the US in 2024 — leaving it with a total trade deficit of about US$27 billion.
The US notice also suggested Singapore has continued expanding manufacturing capacity despite falling industrial occupancy rates. The ministry rejected that characterisation, saying industrial space occupancy rates are “very healthy at around 90% and have been consistently so.”
It added that land is scarce and the amount set aside for industrial use has declined over time because of competing needs.
See also: Singapore ready to act on energy, will discuss Section 301 probe with US
Singapore said it has provided the USTR with its data and will engage the agency to seek clarification on the trade figures and the basis of the Section 301 investigations. It will provide further updates when available and invited businesses and stakeholders to submit feedback.
The exchange underscores the widening scope of Washington’s latest trade offensive. Section 301 investigations can pave the way for retaliatory measures, including tariffs, after a public hearing process. For a trade-dependent hub like Singapore — and for global supply chains that run through it — how the US defines trade balances and manufacturing capacity could carry consequences well beyond bilateral ties.
Uploaded by Evelyn Chan
