Only about a third of Philippine exports to the US will face new tariff

More than 60% of Philippine exports remain exempt from the new 12.5% US tariff, with key products such as semiconductors and agricultural goods largely spared.

The United States has imposed a new 12.5% tariff on selected Philippine exports over concerns about the country’s forced labor rules, but the country’s biggest export earners have largely escaped the additional levy.

The Department of Trade and Industry (DTI) said more than 60% of Philippine exports to the US remain exempt from the new tariff, leaving only 34% of the country’s $18.2 billion exports, or about $6.25 billion worth of goods, covered by the measure.

The exemptions cover some of the Philippines’ biggest export products, including semiconductors, integrated circuits, computers, printers, headphones, aircraft parts, as well as coconut, pineapple, and banana products, helping keep them competitive in one of the country’s largest export markets.

The government is now working to secure similar exemptions for the remaining products by strengthening the country’s compliance with international labor standards. A joint administrative order signed by the DTI, Department of Finance, and Department of Labor and Employment created an inter-agency committee tasked with investigating and prohibiting imports produced through forced labor, one of the issues raised by US authorities.

Products still covered by the tariff could become more expensive for American buyers, making it harder for Philippine exporters to compete and potentially slowing business expansion, hiring, and investment if additional exemptions are not secured.

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