The export of Philippine garments, textiles, and apparel to the US market is expected to suffer a dismal decline this year due to the imposition of higher tariffs by the Trump administration.
Robert Young, president of the Foreign Buyers Association of the Philippines (FOBAP), stated that exports from this sector are projected to reach a dismal $800,000, down from just below $1 billion in 2024. In 2023, the country’s garment, textile, and apparel sector exported $1.2 billion.
“We cannot set a target yet for 2025 until all of Trump’s rulings are implemented, but given the worst-case scenario, it will only be a dismal $800,000,” said Young, attributing the decline to the “Make America Great Again (MAGA)” policy campaign of the Trump administration.
Young noted that the pending additional taxes and reciprocal tariff implementations by countries affected by Trump’s new tariffs are expected to result in higher retail prices, which will likely deter buyers from purchasing these products.
“At present, the industry is in limbo, awaiting the final trade ruling, and therefore no additional orders are being placed,” he said.
Meanwhile, Young mentioned that domestic garment manufacturers are exploring and developing new markets and trade opportunities.
Practically devoid of a textile manufacturing industry, Philippine garment manufacturers rely on imported raw materials for their cut-and-sew operations. Most of the industry’s raw materials are also imported from China, whose products are the primary target of Trump’s trade policy.