THE Export Development Council (EDC) and the Philippine Exporters Confederation Inc. (Philexport) have warned that a proposed 19 percent tariff on Philippine goods entering the United States could further strain exporters already contending with fragile global demand and rising costs.
In a Senate hearing on trade, EDC Legislative Committee Chair Atty. Rami G. Hourani said his Cebu-based export business saw US orders plunge 50–60 percent after earlier tariff hikes, underscoring the vulnerability of Philippine firms heavily dependent on the American market.
He urged lawmakers to commission a comprehensive economic impact review and ensure trade talks are conducted transparently and with broad industry participation.
The EDC’s Network Committee on Legislative and Advocacy Monitoring also laid out policy recommendations to cushion the sector, including fast-tracking Senate concurrence for trade deals, setting aside mitigation funds under the 2026 national budget, and accelerating diversification efforts such as a free trade agreement with the European Union. Immediate support for vulnerable industries was also flagged as a priority.
Hourani pointed to a clause in the US proposal that would apply the 19 percent duty only to products with non-US content, effectively pressuring Philippine manufacturers to source materials from America. “This limits flexibility in managing global supply chains,” he said.
The tariff plan has heightened concern across the industry, with business groups urging the government to act swiftly through fiscal and policy measures while expanding trade partnerships abroad.
Despite the uncertainty, EDC and Philexport reaffirmed their commitment to work with government and private stakeholders to help exporters adjust. They encouraged firms to engage in policy dialogues and tap support programs to navigate shifting trade dynamics. / KOC