The Philippine government today reiterated its unwavering optimism and commitment to strengthening its economic partnership with the United States, even as it carefully assesses the implications of Washington’s recent decision to impose a 20 percent tariff on all Philippine goods entering the U.S. market, effective August 1.
Special Assistant to the President for Investment and Economic Affairs Frederick Go, in a Palace press briefing, acknowledged the receipt of the latest reciprocal tariff from the United States. While expressing concern over the new levy, Go emphasized the government’s determination to maintain a constructive and productive engagement with its top trading partner.
“We are concerned that the U.S. has decided to impose a 20 percent tariff on Philippine exports,” Go stated. “The fact remains, however, that the 20 percent rate is the second lowest among all reciprocal tariffs that the U.S. has imposed on the region, the lowest being the 10 percent of Singapore.”
The Philippine government continues to highly value its strategic relationship with the United States and is actively pursuing a Bilateral Comprehensive Economic Agreement or a possible Free Trade Agreement (FTA) to establish a more sustainable and equitable trade partnership.
In a proactive move to address the tariffs and further advance trade relations, Special Assistant Go and his team are scheduled to travel to Washington, D.C. next week to commence the “second stage” of high-level negotiations. He will be joined by Department of Trade and Industry (DTI) Secretary Ma. Cristina A. Roque and Undersecretaries Ceferino Rodolfo and Allan Gepty.
Go clarified that while the 20 percent tariff will broadly apply, certain key Philippine exports to the U.S. may be spared. Notably, semiconductor exports, which are critical to both nations’ supply chains and U.S. national security, have been exempted from the new tariffs.
“Our number one export to America is semiconductors and electronics,” Go confirmed. “The good news for us right now is that the majority of our semiconductor exports are not covered by the tariffs.”
As trade negotiations progress, the Philippine government reaffirms its steadfast commitment to fostering mutually beneficial economic ties with the United States, while diligently protecting the interests of Filipino exporters, workers, and industries.
