Philippine trade authorities and the private sector are expected to come up within two to three weeks with a validated list of countries that could serve as alternative sources of production inputs for Philippine exports to the United States.
The move also aims to provide evidence demonstrating that the Philippines is not sourcing production inputs from countries associated with the use of forced labor as identified by the Office of the United States Trade Representative (USTR).
Philippine Chamber of Commerce and Industry (PCCI) President Ferdinand “Perry” Ferrer told reporters on Monday, July 27, on the sidelines of the Turkish business delegation’s visit, “We’re going through the list now.”
“Hopefully, we can prove that the input materials are not coming from any countries with forced labor,” he said, adding that the validation process could be completed within two to three weeks.
Based on 2025 trade data, the Department of Trade and Industry (DTI) said Philippine exports valued at USD11.98 billion—including electronic products, auto parts, aircraft components, agricultural products, and minerals—are exempt from the latest round of tariffs imposed by the Trump administration. Meanwhile, exports worth USD6.25 billion are subject to the additional 12.5 percent tariff. These products account for 34.28 percent of Philippine exports to the United States.
Exempt electronic products include semiconductors, automatic data processing machines, integrated circuits, printers, headphones, and projectors.
Exempt auto products include ignition wiring sets and lead-acid batteries, while aircraft-related exemptions cover aircraft parts and seats.
Exempt agricultural products include coconut products (copra/crude oil, water/juice, and desiccated coconut); pineapple products (preserved, juice, dried, fresh, and jams); bananas (fresh, frozen, and dried); mangoes (dried, preserved, purees, and frozen); cocoa; frozen cassava; taro (frozen and dried); as well as pastries and biscuits.
Copper ores and concentrates, nickel ores and concentrates, and cobalt ores and concentrates are also exempt from the new tariff.
Meanwhile, the exports covered by the tariff are primarily products from labor-intensive industries, including leather and travel goods, apparel, footwear, and toys.
On July 24, 2026, the Office of the United States Trade Representative (USTR) announced new tariffs on imports from 60 economies, including the Philippines, citing their alleged failure to prohibit and effectively enforce restrictions on the importation of goods produced with forced labor under Section 301 of the U.S. Trade Act of 1974.
