THE latest US tariff on selected Philippine exports reinforces the need for businesses to diversify beyond a single export market.
In a statement, the Cebu Chamber of Commerce and Industry (CCCI) warned that dependence on a single trading partner leaves exporters vulnerable to policy changes beyond their control.
The chamber said the 12.5 percent tariff, imposed following the US Trade Representative’s Section 301 investigation, underscores the importance of expanding into Asean, the Middle East and other fast-growing markets while investing in productivity, innovation, digitalization, workforce development and higher value-added manufacturing.
“These are not new priorities. They are more urgent ones,” the chamber said, noting that “overreliance on a single market carries risks that no amount of dialogue can fully offset.”
Inter-agency committee
CCCI also welcomed the government’s creation of an inter-agency committee led by the Department of Trade and Industry (DTI) to strengthen the country’s forced labor prohibition and enforcement framework.
It said the tariff is a compliance measure rather than a blanket levy, making it possible for the Philippines to seek reconsideration or exemptions if it strengthens its enforcement regime and continues engaging with U.S. trade officials.
The Department of Finance (DOF), together with the DTI and the Department of Labor and Employment, has signed a Joint Administrative Order (JAO) creating an inter-agency mechanism to investigate and block imports produced through forced labor.
Finance Secretary Frederick Go said the JAO provides a framework to prevent goods linked to human exploitation from entering the Philippine market while strengthening responsible business practices and ethical sourcing.
As a member of the inter-agency committee, the DOF will help align trade policy and customs enforcement with international labor standards while supporting legitimate trade and investment.
Impact more contained
CCCI said the immediate impact on Cebu’s export-oriented economy is more contained than initially feared because the country’s major exports — including semiconductors, coconuts, pineapples, bananas and nickel ore — are exempt from the new tariff.
According to the DTI, only 34.28 percent of Philippine exports to the United States, or $6.25 billion worth of goods, will be subject to the new tariff. The remaining $11.98 billion in exports will remain exempt.
However, CCCI warned that manufacturers, agribusiness firms and value-added processors with significant exposure to the US, the Philippines’ largest export market, will still face higher trade costs.
CCCI said it will continue working with government agencies and industry groups to monitor developments, gather industry feedback and advocate policies that strengthen exporters’ competitiveness, protect jobs and sustain economic growth. / KOC