Farmers cautioned the government against complacency and warned that the additional 17% imposed recently by the U.S. on Philippine exports may actually be detrimental to the country’s agricultural sector.
The Federation of Free Farmers (FFF) and the Magsasaka Party List said in reaction to several arguments from government officials and some from the private sector that the Philippines may benefit from the tariff adjustment since many competing countries like Thailand and Vietnam were slapped with higher tariffs.
“Even if competing products become more expensive than ours, the fact remains that our products will still become 17% more expensive to the American consumer who can then decide to stop buying our products and shift to cheaper substitutes,” said Leonardo Montemayor, FFF Board Chairman and first nominee of the Magsasaka Party List.
Montemayor added that competing countries may provide additional support to their producers and exporters in order to offset the increase in US tariffs and maintain their competitive advantage. “In our case, farmers and exporters are basically left to fend for themselves,” said Montemayor.
According to the Philippine Statistics Authority (PSA), the Philippines exported US$1.37 billion worth of agricultural products to the U.S. in 2024. The exports consisted mainly of edible fruits and nuts (including bananas and pineapples), animal or vegetable fats and oils, tobacco and seafoods.
The FFF further warned of a potential dumping of excess agricultural products by countries who are shut off from the US market due to the high tariffs. “Even US producers who are hit by retaliatory tariffs by their traditional trading partners will try to look for alternative markets and could end up selling their excess supply to us at very low prices. In the end, it might be our own farmers who will bear the brunt of the Trump tariffs.”, said Montemayor.
Among those at risk will be the country’s 3.4 million coconut farmers who may see copra prices plunging if foreign demand slows down due to the tariff hikes in the US market. In 2023, the country exported nearly Php22 billion worth of coconut products to the United States.
Historically, the Philippines has incurred huge agricultural trade deficits. In 2024, the country imported about two and a half times more agricultural products than what it exported both to the US and the world. The US market accounted for around 17% of total Philippine agricultural trade.
The FFF urged the government to intensify its efforts to improve local productivity and cost competitiveness instead of relying on tariff differentials in the export market. “If we do not do our homework and the US eventually withdraws these tariff hikes, we will be back to zero and lose out again to other countries,” warned Montemayor.
