The Philippine Exporters Confederation, Inc. (PHILEXPORT) believes the United States’ 10% tariff on Chinese imports will have minimal impact on the Philippines. PHILEXPORT President Sergio R. Ortiz-Luis, Jr. explained, “I don’t see the 10% imposed on China affecting the Philippines because Chinese prices are so low. Even adding the 10% will not stop the US from buying from China.”
Ortiz-Luis expects robust Philippine exports to the US, the country’s top export market, to continue, largely unaffected by the trade tensions between the US and China. Data from the Philippine Statistics Authority (PSA) reveals the US led Philippine export destinations in December 2024, with US$94 million in value, representing 16.8% of the country’s total exports for the month. Japan, China, Hong Kong, and Singapore followed, rounding out the top five.
The US implemented broad tariffs on China on February 4, 2025, with potential tariffs looming over other trading partners. While a 25% tariff on Canada and Mexico has been temporarily postponed, Ortiz-Luis expressed doubt about the long-term impact of these measures. “It doesn’t look like he’s really serious because they know it would be harder if China engages in a trade war with the US,” he commented.
China has responded with retaliatory tariffs on US products, including 15% on coal and liquefied natural gas, and 10% on crude oil and agricultural machinery.
Beyond the trade issues, Ortiz-Luis emphasized the desire for improved geopolitical relations between the Philippines and China. “We hope the US can lower geopolitics in the Philippines so we can recover the market we lost with our neighbors and China. Not only the market but tourism and investment were also affected by geopolitics,” he stated.
While the US administration has characterized tariffs as beneficial for the US economy, job protection, and revenue generation, economists caution that reciprocal tariffs can lead to price increases across various sectors, including cars, lumber, steel, food, and alcohol.
