By Beatriz Marie D. Cruz, Senior Reporter
THE UNITED STATES’ new 12.5% tariff on imports from the Philippines could affect about $6.25 billion worth of Philippine-made goods, according 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 approximately $6.25 billion, may 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 failed to restrict imports of goods made with forced labor.
Ms. Sykimte said the products most exposed to the new US tariff are Philippine-made leather and travel goods, apparel, footwear, and toys.
On the other hand, 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, such as copper ores and concentrates; nickel ores and concentrates; and cobalt ores and concentrates are not affected by the 12.5% tariff.
The new US tariff replaced the 10% 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 in the region.
“In contrast, [exports to the US from] our neighbors like Indonesia are 83% exposed, while Malaysia is at 40%,” he said. “However, we still want the best 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 goods tied to forced labor.
“In our submissions to the US, we’ve highlighted that, de facto, we don’t have a problem in terms of the entry of goods that have a forced labor component,” he said.
“We have also counter-checked it with respect to the US Forced Labor Protection Act. They have a website that lists companies which they have flagged to be using forced labor, and we have counter-checked it with respect to the sources of imports of the Philippines,” Mr. Rodolfo noted.
The DTI said it is continuously engaging with the USTR on the forced labor issue, with the US agency assuring that its overall assessment of the Philippines is still ongoing.
“Nevertheless, we’d like to reassure everyone, our stakeholders, that we continue to engage the US, in particular 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 investigate imported goods produced with forced labor practices.
Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI) called for a review of the basis 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 not clear what industry or group the US is referring to regarding forced labor. If there is such an incident, other industry sectors should not be included in 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 in line with labor standards.
He noted, however, that the new tariff is an added burden to the country’s exporters as they grapple with high electricity and labor costs.
“This is another cross that we have to bear, but we are still thinking positive,” he said in a phone call.
Former Tariff Commissioner George N. Manzano said tariff exemptions for electronics exports should be maintained to mitigate the impact of the new US levies. Electronics account for the Philippines’ largest export shipments to the US.
“The more important issue is whether the Philippines can retain the exemptions that many of its electronic exports enjoyed under the previous global tariff. Keeping these exemptions would go a long way toward reducing the impact of the 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 year. In the first five months of 2026, exports to the US grew by an annual 23.8% to $6.68 billion.
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