Singapore is seeking concessions on pharmaceutical exports to the U.S., acknowledging that a 10% baseline tariff will not be eased.

Following a call with US Secretary of Commerce Howard Lutnick on Friday, Singapore Deputy Prime Minister Gan Kim Yong told local media that the Asian trading hub is negotiating with the U.S. over pharmaceutical exports as new levies loom over the drugs. Gan said the products makes up over 10% of the city-state’s exports to the U.S., the Straits Times reported Sunday.

Gan, who is also the country’s trade minister, said Lutnick also raised the issue of export controls on high-end chips for artificial intelligence, although he is satisfied with Singapore’s system for managing them, the paper reported. The issue has drawn renewed scrutiny after authorities arrested multiple people in connection with server fraud.

Lutnick is prepared to work with the city-state to maintain access to the chips and explore export curbs to ensure chips reach authorized end-users, Gan was quoted as saying.

Gan said in a separate LinkedIn post that despite the negotiations, the U.S. is not prepared to lower its 10% baseline tariff. Concerns over a global trade slowdown has already prompted a downgrade in official forecasts for economic growth. The issue has also become a key campaign issue for Gan’s ruling People’s Action Party, which seeks to extend its six decades in power at polls on May 3.

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