PHILIPPINE-MADE products exported to the United States will be subject to a 12.5 percent tariff under a new trade policy announced by the US government as part of Washington’s latest effort to combat forced labor in global supply chains.
The measure was announced by the Office of the United States Trade Representative (USTR) following an investigation under Section 301 of the US Trade Act of 1974.
The probe examined whether 60 US trading partners, including the Philippines, have laws prohibiting the importation of goods produced through forced labor and whether those laws are being effectively enforced.
The Philippines is among the economies that will face a 12.5 percent tariff, the higher of the two rates imposed under the new policy.
Countries that have already adopted or committed to implementing and enforcing bans on imports produced through forced labor were assigned the lower 10 percent tariff.
A tariff is a tax imposed by the importing country on foreign-made goods. In this case, the additional duty will be paid by US importers bringing Philippine products into the American market.
The new tariff is expected to make Philippine exports more expensive for American buyers, which could prompt some US companies to reduce purchases from Philippine suppliers or shift to alternative sources with lower trade costs.
The policy applies to most imports from the affected economies, although the United States exempted certain products, including some raw materials, goods considered essential to its economy, and other items identified in its implementing guidelines.
The US government said the policy is intended to encourage trading partners to strengthen measures against goods produced through forced labor.
Washington maintains that products made using forced labor create an unfair trade advantage and undermine workers’ rights. US officials also argued that countries without effective import bans allow such products to remain in global supply chains, affecting fair competition.
The investigation began in March 2026 and covered 60 economies representing nearly all US imports. It included consultations with governments, public hearings, and thousands of written submissions before the USTR reached its final decision.
The United States remains one of the Philippines’ largest export markets, purchasing electronics, semiconductors, machinery, garments, coconut products, processed food, and other manufactured goods. (TPM/SunStar Philippines)