By Beatriz Marie D. Cruz, Senior Reporter
THE UNITED STATES’ recent 12.5% tariff on imports from the Philippines could affect about $6.25 billion price of Philippine-made goods, in response to the Department of Trade and Industry (DTI).
“A preliminary assessment using 2025 trade data indicates that 34.28% of Philippine exports to the US, valued at roughly $6.25 billion, could also be subjected to the 12.5% tariffs,” Bianca Pearl R. Sykimte, director of the DTI-Export Marketing Bureau, told reporters in a Viber message.
Last week, the US imposed a 12.5% levy on goods from the Philippines after a probe by the US Trade Representative (USTR) ruled that the country didn’t restrict imports of products made with forced labor.
Ms. Sykimte said the products most exposed to the brand new US tariff are Philippine-made leather and travel goods, apparel, footwear, and toys.
Then again, she estimated around $11.98 billion in Philippine exports are exempted from US tariffs.
Philippine exports exempted from the 12.5% tariff are electronic products like semiconductors, automatic data processing machines, integrated circuits, printers, headphones, projectors; auto parts, including ignition wiring sets, lead acid batteries; and aircraft parts including seats.
Agriculture products like coconut products (copra/crude oil, water/juice, desiccated); pineapples (preserved, juice, dried, fresh, jams); bananas (fresh, frozen, dried); mangoes (dried, preserved, purees, frozen); cocoa; frozen cassava; taro (frozen, dried); pastries and biscuits are also exempted from US tariffs, the DTI said.
The DTI also noted that minerals, corresponding to copper ores and concentrates; nickel ores and concentrates; and cobalt ores and concentrates are usually not affected by the 12.5% tariff.
The brand new US tariff replaced the ten% baseline levy on the Philippines, which expired on July 24, after the US Supreme Court ruled in February that President Donald J. Trump exceeded his authority by imposing reciprocal tariffs under the International Emergency Economic Powers Act.
At a briefing last week, Trade Undersecretary Ceferino S. Rodolfo noted that the Philippines’ exports to the US are relatively less exposed than its competitors within the region.
“In contrast, [exports to the US from] our neighbors like Indonesia are 83% exposed, while Malaysia is at 40%,” he said. “Nevertheless, we still want the most effective deal possible for our exporters.”
Mr. Rodolfo said the Philippine government has reassured the US that the country has no issues regarding the entry of products tied to forced labor.
“In our submissions to the US, we’ve highlighted that, de facto, we don’t have an issue when it comes to the entry of products which have a forced labor component,” he said.
“Now we have also counter-checked it with respect to the US Forced Labor Protection Act. They’ve an internet site that lists firms which they’ve flagged to be using forced labor, and we’ve counter-checked it with respect to the sources of imports of the Philippines,” Mr. Rodolfo noted.
The DTI said it’s repeatedly engaging with the USTR on the forced labor issue, with the US agency assuring that its overall assessment of the Philippines continues to be ongoing.
“Nevertheless, we’d prefer to reassure everyone, our stakeholders, that we proceed to interact the US, specifically the USTR, on the forced labor issue,” Mr. Rodolfo said.
An inter-agency committee composed of the DTI with the Department of Labor and Employment, Department of Finance, Bureau of Customs, Board of Investments, and the Philippine Economic Zone Authority was created last week to analyze imported goods produced with forced labor practices.
Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) called for a review of the premise for the US’ 12.5% tariff, saying Washington should provide evidence to support its claim that the Philippines imports goods produced through forced labor.
“We (private sector) are usually not clear what industry or group the US is referring to regarding forced labor. If there’s such an incident, other industry sectors mustn’t be included within the 12.5% tariff,” PCCI President Ferdinand A. Ferrer said in a Viber message.
Foreign Buyers Association of the Philippines President Robert M. Young said its members sign contracts with US buyers ensuring that its goods are produced consistent with labor standards.
He noted, nevertheless, that the brand new tariff is an added burden to the country’s exporters as they grapple with high electricity and labor costs.
“That is one other cross that we’ve to bear, but we’re still pondering positive,” he said in a phone call.
Former Tariff Commissioner George N. Manzano said tariff exemptions for electronics exports needs to be maintained to mitigate the impact of the brand new US levies. Electronics account for the Philippines’ largest export shipments to the US.
“The more vital issue is whether or not the Philippines can retain the exemptions that a lot of its electronic exports enjoyed under the previous global tariff. Keeping these exemptions would go a good distance toward reducing the impact of the brand new tariffs,” he said in a Viber message.
Philippine exports to the US reached $13.44 billion in 2025, accounting for nearly 16% of the country’s total exports for the yr. In the primary five months of 2026, exports to the US grew by an annual 23.8% to $6.68 billion.