THE Philippine Exporters Confederation Inc. (Philexport) has expressed concern over the United States' decision to impose an additional 12.5 percent tariff on most Philippine exports, warning that the measure could weaken the country's competitiveness in the US market and further strain exporters already grappling with global economic challenges.
In a statement posted on its Facebook page on July 24, Philexport said it supports international efforts to eliminate forced labor and uphold ethical labor standards but argued that broad-based tariffs are not the best way to achieve those goals.
"The Philippines has long been a responsible trading partner of the United States and remains firmly committed to internationally recognized labor standards," Philexport president Sergio R. Ortiz-Luis Jr. said.
The additional tariff stems from the United States Trade Representative's (USTR) Section 301 investigation related to forced labor import prohibitions.
Ortiz-Luis said Philippine exporters operate under laws and regulations that protect workers' rights, while many companies have adopted globally recognized environmental, social and governance (ESG) standards and responsible sourcing practices required by international buyers.
He said the new tariff comes as exporters continue to face high logistics costs, global economic uncertainty, geopolitical tensions and stronger competition from neighboring countries.
"The additional 12.5-percent duty could reduce the competitiveness of Philippine products in the US market, particularly for our micro, small, and medium enterprises (MSMEs), which account for the majority of our exporters," Ortiz-Luis said.
He added that industries such as furniture, garments, processed food, coconut products, handicrafts, electronics, marine products, and other value-added manufacturers could experience weaker demand or pricing pressure as American buyers seek alternative suppliers.
Philexport also said that many Philippine exports complement rather than directly compete with US industries and help strengthen and diversify American supply chains.
"The Philippines should be viewed as part of the solution in building trusted, transparent and resilient supply chains," Ortiz-Luis said. "Our exporters have consistently demonstrated compliance with international standards and continue to invest in responsible and sustainable production practices."
The exporters' group urged the Philippine government to continue engaging the US administration through diplomatic and trade channels to seek a review of the tariff and pursue possible exemptions for Philippine exports.
It also called on the government to strengthen the country's legal and regulatory framework where needed to reinforce the Philippines' commitment to preventing goods produced through forced labor from entering global supply chains.
"Rather than imposing blanket tariffs, we hope both governments can work together toward a cooperative, evidence-based approach that promotes ethical trade while preserving market access for responsible exporters," Ortiz-Luis said.
Philexport said it will work with government agencies, industry groups and exporters to assess the impact of the tariff on specific products, identify the sectors most affected and develop policy measures and market diversification strategies to help Philippine exporters remain globally competitive. MLSA
