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Pharmaceuticals form 13% of Singapore's exports to the US,

amount to $3.1 billion

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Many pharma firms in Singapore may qualify for a tariff

exemption, says deputy PM

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Trade talks ongoing for pharmaceutical and semiconductor

sectors

(Adds quotes, background and context)

By Xinghui Kok

SINGAPORE, Sept 27 (Reuters) - Pharmaceutical companies

in Singapore are seeking clarification on whether they would

qualify for an exemption from steep tariffs imposed by the

United States on their goods, Singapore's Deputy Prime Minister

Gan Kim Yong said on Saturday.

Singapore exports about S$4 billion ($3.10 billion) of

pharmaceutical products to the U.S. and most of these exports

are branded drugs, Gan, who is also trade minister, told

reporters.

U.S. President Donald Trump announced on Thursday 100%

duties on imports of branded drugs that would apply to firms

unless they build a manufacturing presence in the U.S.

This is a concern for Singapore as pharmaceuticals form

around 13% of all Singapore exports to the U.S., said Gan.

He said that many of the pharmaceutical firms in Singapore

have existing plans to expand or build their business footprint

in the U.S., which may qualify them for a tariff exemption.

Gan, who met U.S. Commerce Secretary Howard Lutnick in

August, said trade talks with the U.S. are ongoing, with

officials on both sides working on details of possible deals for

the pharmaceutical and semiconductor sectors.

"Ultimately, we hope to be able to have an arrangement with

the U.S. to allow us to continue to be competitive in the U.S.

market, to allow our pharmaceutical companies to be able to

continue to export to the U.S. market. As to whether the tariff

rate will be 15% or any other tariff is something that is part

and parcel of the negotiation, but we do look forward to having

some preferential treatment versus the current top-line tariff

the U.S. has imposed," said Gan.

Singapore's exports to the U.S. are subject to a 10%

baseline tariff despite a free trade agreement in place with the

island nation since 2004.

Broader sectoral tariffs could hurt demand for Singaporean

products, including semiconductors, consumer electronics and

pharmaceutical goods, which the central bank in July said

account for about 40% of exports to the United States.

The effective U.S. tariff rate on Singapore's exports rose

to 7.8% in July from 6.8% in April on the back of steel and

aluminium tariff hikes.

($1 = 1.2910 Singapore dollars)

(Reporting by Xinghui Kok; Editing by William Mallard and

Muralikumar Anantharaman)