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The Philippine Chamber of Commerce and Industry acknowledges as positive, although not a game-changer, the reduction to 19% from 20% of the tariff rate on Philippine exports to the United States
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The PCCI said broader factors like overall economic demand, global competition, logistics costs, production challenges, and non-tariff barriers often have a far greater impact on export volumes than a single percentage point tariff change
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The PCCI called on the government to continue efforts to negotiate deeper and more comprehensive tariff relief across a wider range of product lines, as well as to address NTBs
The Philippine Chamber of Commerce and Industry (PCCI) acknowledges as positive, although not a game-changer, the reduction to 19% from 20% of the tariff rate on Philippine exports to the United States.
“Every percentage point counts,” PCCI president Enunina Mangio said in a statement.
READ: US resets tariff on PH exports to 19%
She explained: “While a 1% reduction is modest, it translates directly to lower costs of Philippine products in the US market versus those of other countries that are facing higher tariffs; provides exporters a bit more flexibility in pricing negotiations; and, particularly for micro, small, and medium enterprises (MSMEs), can translate to meaningful cost savings, stronger profit margins, and improved price competitiveness.”
Following a meeting with the Philippine delegation led by President Ferdinand Marcos, Jr. on July 22, US President Donald Trump announced that the US has set to 19% the tariff rate on Philippine exports to the US, while select US exports to the Philippines will have zero tariff.
The PCCI noted, however, that while the reduction is helpful, it is not a game-changer.
“Realistically speaking, a 1% reduction is unlikely to trigger a massive surge in exports. The impact will be most felt by specific industries already exporting the affected goods,” Mangio said.
The PCCI said broader factors like overall economic demand, global competition, logistics costs, production challenges (infrastructure, input costs, bureaucratic efficiency), and non-tariff barriers (NTBs) often have a far greater impact on export volumes than a single percentage point tariff change.
The Chamber called on the government to continue efforts to negotiate deeper and more comprehensive tariff relief across a wider range of product lines, as well as to address NTBs.
The group also asked the government to aggressively implement domestic reforms to improve doing business and trade, lower logistics and energy costs, promote digital infrastructure and provide international trade incentives to strengthen competitiveness, improve productivity and build a resilient and inclusive economy.
“We hope this is just the start,” Mangio said as she urged the Philippine government to negotiate for more product coverage for reduced tariffs; tackle regulatory hurdles such as sanitary and phytosanitary measures and standards recognition, which can be more significant obstacles than tariffs themselves; revisit discussions on a more comprehensive bilateral trade agreement or deeper integration under existing frameworks like the Indo-Pacific Economic Framework; and, negotiate for the expansion of trade preference programs like the Generalized System of Preferences.
