Countries like Singapore, while lauded for free trade agreements, are masters of the non-tariff barriers (NTBs) that level the playing field in their favor. These barriers can be far more insidious than any duty, quietly inflating costs and creating market bottlenecks that disproportionately hurt U.S. exports. It’s easy to point at the tariffs, but the real challenge is the hidden infrastructure of trade obstacles that many nations employ.
Take Singapore. Despite having a free trade agreement in place with the U.S., their approach to international trade isn’t as open as it seems on paper. The country still utilizes a myriad of NTBs that put American goods and services at a distinct disadvantage. The impact? U.S. companies face not only higher costs but also a prolonged struggle to break into these markets.
Start with excise taxes. Singapore slaps massive duties on everything from alcohol to vehicles, making U.S. products substantially more expensive for local consumers. A bottle of American whiskey, for example, could see a staggering 300% markup, simply due to these excise taxes. Now, imagine you’re a company trying to sell whiskey in Singapore. You’re not just competing on quality or branding. You’re battling a government that uses taxes to tilt the scale away from your product. That’s not free trade.
Next, there are the technical barriers to trade (TBTs). U.S. food products already approved by the USDA or FDA often face unnecessary, lengthy delays in Singapore due to additional testing, certification, and labeling requirements. The bureaucratic hurdles are a hidden tax that American exporters have to pay, in both time and money. It’s a classic case of red tape that makes it more expensive and complicated to enter a market, even when your product is already approved in other countries.
Then there’s the issue of motorcycles. Singapore’s Certificate of Entitlement (COE) system, alongside taxes that target larger-engine vehicles, disproportionately hurts American brands like Harley-Davidson. For a motorcycle to hit the streets of Singapore, its owner has to pay a price tag that can exceed the cost of the bike itself in taxes and fees. U.S. companies that rely on the sale of premium products are pushed into a corner by such policies. It’s no longer about whether you make a good product — it’s about whether you can navigate the labyrinth of taxes and restrictions that countries like Singapore have in place.
But it doesn’t stop with goods. The service sector is just as locked down. Financial, legal, and media services in Singapore face strict licensing requirements that make it harder for U.S. firms to operate there. The need for local partnerships to access markets further restricts the full potential for U.S. businesses. These barriers make the market seem open while ensuring that local players, often with government backing, have the advantage over foreign competitors.
Finally, let’s talk about intellectual property (IP) protection. While Singapore has made strides in improving IP enforcement, it’s still a weak link in their armor, especially when it comes to online piracy and trademark issues. American companies trying to protect their brands find themselves dealing with a growing number of trademark squatting cases. In a digital world, that’s a huge problem. Your brand is being hijacked before you even get a chance to make your mark in the market.
So, what’s the takeaway? Tariffs are just the tip of the iceberg. The real challenge in global trade comes from these NTBs — the quiet but powerful barriers that prevent American products from competing on equal footing. Countries like Singapore may tout 0% tariffs, but beneath the surface, it’s a different story. The trade imbalance isn’t just about tariffs; it’s about a host of hidden practices that undercut U.S. competitiveness. A future administration — whether it’s Trump’s team again or someone else — needs to recognize that these structural issues are the real threat to U.S. trade and economic prosperity.
Next time someone tells you Singapore doesn’t charge tariffs, ask them to look beneath the surface. Tariffs are the visible part of the iceberg. But the real damage happens below the waterline.