FURNITURE manufacturers in the Philippines are raising concerns over potential job losses and a weakened price advantage in the United States’ US$1.8 billion furniture import market due to a possible tariff imposition.
According to Philexport, the Chamber of Furniture Industries of the Philippines Inc. (CFIP)-National, Pampanga Furniture Industries Foundation (PFIF), and Cebu Furniture Industries Foundation (CFIF) jointly stated in a May 5, 2025, letter to the Department of Trade and Industry that the tariff could negatively impact the industry’s competitiveness.
The groups estimate that factory closures and job losses for approximately six million Filipinos across the furniture supply chain are possible consequences. Furthermore, they warn that the new US tariff policy threatens the industry’s eight percent annual growth target and its 2030 roadmap to establish the Philippines as Asia’s design innovation hub and a global leader in high-end furniture.
Furniture makers are specifically appealing for diplomatic engagement to prioritize the retention of the zero tariff for Philippine furniture in bilateral trade negotiations. They are also requesting the Philippine government to highlight the industry’s commitment to increase US hardwood imports to 50 percent as a reciprocal trade gesture, shifting away from solely sourcing Asian hardwoods.
Moreover, CFIP, CFIF and PFIF emphasized the need to expand Technical Education and Skills Development Authority (Tesda)-led workforce training and upskilling programs. This initiative aims to equip workers to handle new materials and advanced processes, potentially safeguarding around 45,000 livelihoods tied to artisan-based furniture production.
The furniture industry stakeholders highlighted that the Philippine furniture market is valued at $844 million and is projected to reach $1.7 billion by 2033, currently supporting 5.6 million direct and indirect jobs.
They also pointed out that US exports to the Philippines have surged by 25 percent, indicating resilience through premium craftsmanship and sustai-nable practices.
The furniture trade groups assured that the Philippine furniture industry does not pose a competitive threat to American domestic manufacturers, as the majority of Philippine exports to the US consist of non-upholstered items made from indigenous natural materials like rattan and abaca, which are not readily available in the United States.
The Philippine government has formed a technical working group (TWG) that would continue the discussions with the United States on its reciprocal tariff.
According to a report, the TWGs will be working on a framework for the future direction of the US-Philippines trade, which is expected to be completed before the 90-day reciprocal tariff pause lapses. / KOC WITH PHILEXPORT NEWS AND FEATURES