<\/p>\n
By Beatriz Marie D. Cruz, <\/b>Senior Reporter <\/i><\/p>\n
THE UNITED STATES\u2019 recent 12.5% <\/span>tariff on imports from the Phil<\/span>ippines could <\/span>affect<\/span> about $6.25 billion price of Philippine-made goods, in response to the Depart<\/span>ment of Trade and Industry (DTI).<\/span><\/p>\n \u201cA 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,\u201d Bianca Pearl R. Sykimte, director of the DTI-Export Marketing Bureau, told reporters in a Viber message.<\/p>\n Last week, the US imposed a 12.5% levy on goods from the Philippines after a probe by the US Trade <\/span>Representative (USTR) ruled that <\/span>the country didn’t restrict imports <\/span>of products made with forced labor.<\/span><\/p>\n Ms. Sykimte said the products most exposed to the brand new US tariff are Philippine-made leather and travel <\/span>goods, apparel, footwear, and toys.<\/span><\/p>\n Then again, she estimated around $11.98 billion in Philippine exports are exempted from US tariffs.<\/p>\n 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.<\/p>\n 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 <\/span>from US tariffs, the DTI said.<\/span><\/p>\n The DTI also noted that minerals, corresponding to copper ores and concentrates; nickel ores and concentrates; and cobalt ores and concentrates <\/span>are usually not affected by the 12.5% tariff.<\/span><\/p>\n 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.<\/span><\/p>\n At a briefing last week, Trade Undersecretary Ceferino S. Rodolfo noted that the Philippines\u2019 exports to the US are relatively less exposed <\/span>than its competitors within the region.<\/span><\/p>\n \u201cIn contrast, [exports to the US from] our neighbors like Indonesia are 83% exposed, while Malaysia is at 40%,\u201d he said. \u201cNevertheless, we still want the most effective deal possible for our exporters.\u201d<\/span><\/p>\n 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.<\/p>\n \u201cIn our submissions to the US, we\u2019ve highlighted that, de facto, we don\u2019t have an issue when it comes to the entry of products which have a forced labor component,\u201d he said.<\/p>\n \u201cNow 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,\u201d Mr. Rodolfo noted.\u00a0<\/span><\/p>\n 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.<\/span><\/p>\n \u201cNevertheless, we\u2019d prefer to reassure everyone, our stakeholders, <\/span>that we proceed to interact the US, specifically the USTR, on the forced labor issue,\u201d Mr. Rodolfo said. <\/span><\/p>\n 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.<\/span><\/p>\n Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) called for a review of the premise for the US\u2019 12.5% tariff, saying Washington should provide evidence to support its claim that the Philippines imports goods produced through forced labor.<\/span><\/p>\n \u201cWe (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,\u201d PCCI President Ferdinand A. Fer<\/span>rer said in a Viber message.<\/p>\n Foreign Buyers Association of the Philippines President Robert M. Young said its members <\/span>sign contracts with US buyers ensuring that its goods are produced <\/span>consistent with labor standards.<\/span><\/p>\n He noted, nevertheless, that the brand new tariff is an added burden to the country\u2019s exporters as they grapple with high electricity and labor costs. <\/span><\/p>\n \u201cThat is one other cross that we’ve to bear, but we’re still pondering positive,\u201d he said in a phone call.<\/span><\/p>\n 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\u2019 largest export shipments to the US.<\/p>\n \u201cThe 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,\u201d he said in a Viber message.<\/p>\n Philippine exports to the US reached $13.44 billion in 2025, accounting for nearly 16% of the country\u2019s 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.<\/span><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" REUTERS\/DADO RUVIC\/ILLUSTRATION By Beatriz Marie D. Cruz, Senior Reporter THE UNITED STATES\u2019 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). \u201cA preliminary assessment using 2025 trade data indicates that 34.28% of Philippine exports to the US, […]<\/p>\n","protected":false},"author":1,"featured_media":372537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[4106,19714,17895,9635,1901,18395,2113],"class_list":["post-372536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-billion","tag-dti","tag-exports","tag-exposed","tag-philippine","tag-tariff","tag-worth"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t