A TOP official of the Philippine Exporters Confederation Inc. (Philexport) said exporters are still assessing the potential impact of the new 10 percent blanket tariffs imposed by US President Donald Trump, describing the shifting trade policy as confusing and unsettling.
Philexport president Sergio R. Ortiz-Luis Jr. said in a Feb. 24 interview that domestic exporters feel “insecure” and “in limbo” as they await clarity on how the new levy will apply to Philippine goods.
Trump on Feb. 20 signed an executive order imposing a 10 percent global tariff on imported products, which took effect Feb. 24, following a US Supreme Court ruling that invalidated his most sweeping duties. The US chief executive has also threatened to raise the tariff to 15 percent.
Ortiz-Luis said it remains unclear how the new measure will affect Philippine exports. He noted that when the Philippines was previously slapped with a 19 percent tariff, exports unexpectedly grew because key products such as electronics and agricultural goods — which make up the bulk of shipments to the US — were excluded from coverage.
The exemptions helped the country exceed export projections last year.
However, with the new 10 percent tariff, it is uncertain whether the Philippines is covered, particularly since Manila had signed an agreement with Washington providing for a 19 percent rate on certain
products.
“We don’t really know what will happen. We are in limbo,” Ortiz-Luis said.
He added that since last year, the Philippines has pursued measures to cushion the impact of higher tariffs, including market diversification and negotiations for more trade agreements with Canada and Middle Eastern countries, while continuing engagement with the US.
Malacañang earlier said the Philippines would maintain close bilateral relations with Washington despite policy shifts.
Ortiz-Luis also called on the government to provide concrete support to exporters, particularly in financing access, trade promotion budgets, product development and participation in overseas trade fairs.
He said the Philippines lags behind Southeast Asian peers such as Thailand, Malaysia and Indonesia, which send large, well-funded delegations to major trade exhibits. In contrast, Philippine exporters often shoulder their own costs, with only a small number able to participate.
He also cited limited bank lending to exporters due to perceived risks, describing the sector as among the most underbanked in the region. / PHILEXPORT NEWS AND FEATURES