THE Philippine Exporters Confederation, Inc. (Philexport) called for sustained bilateral engagement with the United States following a ruling by the United States Supreme Court that struck down former President Donald Trump’s “reciprocal” tariffs as unconstitutional.
In a 6-3 decision dated Feb. 20, 2026, the US high court invalidated the sweeping duties imposed under the International Emergency Economic Powers Act (IEEPA), providing relief to Philippine exporters that faced an average 19 percent tariff throughout 2025.
“The invalidation of the previous 19 percent tariff provides much-needed legal relief to our members,” Philexport president Sergio Ortiz-Luis Jr. said in a statement.
“Our exporters showed resilience last year, driving total exports to a record US$84.4 billion despite these headwinds. This ruling removes a major barrier that was unfairly penalizing Philippine craftsmanship and industry,” he added.
However, Philexport said it remains cautious after the US administration announced a new 10 percent global tariff under Section 122 of the Trade Act of 1974, which will take effect on Feb. 24, 2026.
Ortiz-Luis said that while the new measure imposes additional costs, its across-the-board application tempers its competitive impact.
“While this is an additional cost, its global application means the Philippines maintains its relative competitiveness against other trading nations,” he said.
The group said it is optimistic that key sectors, particularly semiconductors and electronics — which accounted for $47 billion in exports in 2025 — will continue to benefit from existing exemptions due to their role in the US technology supply chain.
It added that more than $1 billion worth of Philippine agricultural exports, including coconut oil, pineapples and mangoes, remain covered by specific exemptions.
Philexport noted that Section 122 tariffs are limited to 150 days unless extended by the US Congress, describing the period as a critical window for bilateral negotiations.
The group said continued dialogue will be crucial to safeguard market access and sustain export growth amid shifting global trade policies./ KOC