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The Philippine Exporters Confederation, Inc. urged the government to engage with the United States to reconsider and possibly exempt the country from the new tariff imposed by the Trump administration effective July 24
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PHILEXPORT said while it fully supports efforts to eradicate forced labor around the world, it does not believe that broad-based tariffs are the most effective solution
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The group also underscored that Philippine exporters are compliant with global regulations on workers’ rights
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Exporting micro, small and medium enterprises will be most affected by the tariff, said PHILEXPORT president Sergio R. Ortiz-Luis Jr.
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PHILEXPORT also called on the government to strengthen the country’s legal and regulatory framework, where necessary, to further demonstrate the Philippines’ commitment to preventing the importation of goods produced through forced labor
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Philippine Ambassador to the US Jose Manuel Romualdez announced that the government will negotiate to lower the tariff to at least 10%, with Trade undersecretary Allan Gepty as head of the negotiation team
The Philippine Exporters Confederation, Inc. (PHILEXPORT) urged the government to engage with the United States to reconsider and possibly exempt the country from the new tariff imposed by the Trump administration effective July 24.
“PHILEXPORT urges the Philippine government to continue engaging the U.S. Administration through diplomatic and trade channels to seek a review, even exemption, of the tariff treatment accorded to Philippine exports,” the group said in a statement.
The United States announced a new set of tariffs effective July 24, affecting around 60 countries including the Philippines, which is part of the cluster facing the highest rate at 12.5% due to supposed goods using materials made with forced labor.
READ: PH forms panel as US imposes 12.5% tariff over forced labor in imported goods
At the same, PHILEXPORT asserted that while it fully supports efforts to eradicate forced labor around the world, it does not believe that broad-based tariffs are the most effective solution. It also underscored that Philippine exporters are compliant with global regulations on workers’ rights.
“The Philippines has long been a responsible trading partner of the United States and remains firmly committed to internationally recognized labor standards,” said PHILEXPORT president Sergio R. Ortiz-Luis Jr. “Our exporters operate within a legal and regulatory framework that protects workers’ rights, and many have adopted globally recognized environmental, social, and governance (ESG) and responsible sourcing practices demanded by international buyers.”
Ortiz-Luis further noted that the new tariff comes at a time when the country’s exporters are already facing significant challenges, including elevated logistics costs, global economic uncertainty, geopolitical tensions, and increasing competition from neighboring economies.
The tariff, he said, will affect competitiveness, especially for micro, small, and medium enterprises, which account for the majority of Philippine exporters.
“Sectors such as furniture, garments, processed food, coconut products, handicrafts, electronics, marine products, and other value-added manufactures may experience reduced demand or pricing pressures as buyers seek alternative sources,” Ortiz-Luis said.
PHILEXPORT also called on the government to strengthen the country’s legal and regulatory framework, where necessary, to further demonstrate the Philippines’ commitment to preventing the importation of goods produced through forced labor and to align with evolving global trade expectations.
“Strengthening bilateral trade and investment relations remains in the mutual interest of both the Philippines and the United States,” he said.
PHILEXPORT said it will continue working closely with the government, industry associations, and exporters to assess the product-specific impact of the new tariffs, identify sectors most affected, and formulate appropriate policy and market diversification strategies to help Philippine exporters remain globally competitive.
Meanwhile, government media unit Philippine News Agency reported that Philippine Ambassador to the US Jose Manuel Romualdez announced on July 24, Manila time, that the government will negotiate to lower the 12.5% tariff to at least 10%, with Trade undersecretary Allan Gepty as head of the negotiation team.
READ: PHILEXPORT calls for continued dialogues amid new US tariff uncertainty
