SINGAPORE 16 April 2026 (The Capital Post) – Singapore has formally denied claims by the United States that it enjoys a trade surplus or relies on excess production capacity for its exports, submitting detailed evidence to counter the allegations.
In an official filing to the Office of the United States Trade Representative (USTR), Singapore’s Ministry of Trade and Industry (MTI) stated that the country does not maintain a trade surplus with the US and rejected suggestions that its manufacturing output exceeds market demand.
The submission was made as part of a Section 301 investigation launched by Washington into structural excess capacity among several economies, which could potentially lead to new tariffs. Singapore is among 16 countries being examined under the probe.
MTI emphasised that, contrary to US claims, the United States has consistently recorded a trade surplus with Singapore for more than two decades. Data cited from US agencies showed that Washington posted both goods and services surpluses in recent years, with figures increasing further in 2025.
The ministry also highlighted sector-specific data, noting that the US maintained trade surpluses with Singapore in areas such as semiconductors, electrical equipment and petrochemicals. These figures were presented as evidence that trade between the two nations is balanced and mutually beneficial rather than distorted.
Addressing allegations of excess capacity, Singapore argued that its industrial sector operates within healthy limits, pointing to consistently high occupancy rates in manufacturing spaces and market indicators that reflect steady demand rather than oversupply.
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Officials added that Singapore’s economic model is driven by open-market principles, with production levels aligned to global demand rather than government-led overproduction strategies.
The country also expressed willingness to engage constructively with US authorities to address concerns, underscoring the importance of maintaining strong bilateral economic ties under the long-standing US-Singapore Free Trade Agreement.
The filing comes amid heightened global trade tensions, as Washington intensifies scrutiny of trading partners in a bid to justify potential tariff measures following recent legal setbacks to earlier trade policies.
Singapore reiterated its commitment to fair trade practices and international cooperation, while firmly rejecting claims that its export performance is linked to structural imbalances or unfair advantages. -The Capital Post