The implementation of a U.S. 100% tariff on Singapore’s pharmaceutical exports has been postponed to allow companies time to negotiate potential exemptions with the U.S. administration, according to Straits Times citing Singapore’s junior minister for trade, Gan Siow Huang, on Tuesday.

The tariff, announced last month, was originally scheduled to take effect on October 1. Gan did not specify a new effective date but noted that Singapore-based pharmaceutical firms are awaiting guidance from the U.S. to see if their plans to build or expand manufacturing capacity would qualify them for exemption.

Currently, Singapore exports to the U.S. face a 10% baseline tariff, lower than the levies imposed on its Southeast Asian neighbors. However, sector-specific tariffs, such as the proposed 100% duty on branded drugs, remain a major concern.

Singapore ships roughly S$4 billion ($3.1 billion) worth of pharmaceuticals annually to the United States, the majority of which are branded drugs, making up about 13% of the country’s total exports to the U.S.