The Philippine Exporters Confederation, Inc. (PHILEXPORT) expressed deep concern over the decision of the United States Trade Representative (USTR) to impose an additional 12.5-percent tariff on most Philippine exports under its Section 301 of the U.S. Trade Act of 1974 investigation relating to forced labor import prohibitions.
In a statement, PHILEXPORT said it fully support global efforts to eradicate forced labor and uphold ethical labor standards across international supply chains, but implementing broad-based tariffs are not the most effective means of advancing this shared objective and may instead impose unintended costs on legitimate exporters, workers, and consumers.
“The Philippines has long been a responsible trading partner of the United States and remains firmly committed to internationally recognized labor standards”, said PHILEXPORT President Sergio R. Ortiz-Luis Jr. “Our exporters operate within a legal and regulatory framework that protects workers’ rights, and many have adopted globally recognized environmental, social, and governance (ESG) and responsible sourcing practices demanded by international buyers.”
Ortiz-Luis noted that the additional tariff comes at a time when Philippine exporters are already facing significant challenges, including elevated logistics costs, global economic uncertainty, geopolitical tensions, and increasing competition from neighboring economies.
“The additional 12.5-percent duty could reduce the competitiveness of Philippine products in the U.S. market, particularly for our micro, small, and medium enterprises (MSMEs), which account for the majority of our exporters. Sectors such as furniture, garments, processed food, coconut products, handicrafts, electronics, marine products, and other value-added manufactures may experience reduced demand or pricing pressures as buyers seek alternative sources,” he said.
PHILEXPORT likewise emphasized that many Philippine exports complement rather than compete directly with U.S. industries and contribute to the resilience and diversification of American supply chains.
“The Philippines should be viewed as part of the solution in building trusted, transparent, and resilient supply chains. Our exporters have consistently demonstrated compliance with international standards and continue to invest in responsible and sustainable production practices,” PHILEXPORT said.
Despite the U.S. decision, PHILEXPORT urged the Philippine government to continue engaging the U.S. Administration through diplomatic and trade channels to seek a review, even exemption, of the tariff treatment accorded to Philippine exports.
Dialogue
Furthermore, the Confederation urged the government to strengthen the country’s legal and regulatory framework, where necessary, to further demonstrate the Philippines’ commitment to preventing the importation of goods produced through forced labor and to align with evolving global trade expectations.
“Rather than imposing blanket tariffs, we hope both governments can work together toward a cooperative, evidence-based approach that promotes ethical trade while preserving market access for responsible exporters. Strengthening bilateral trade and investment relations remains in the mutual interest of both the Philippines and the United States,” he said.
PHILEXPORT will continue working closely with the government, industry associations, and exporters to assess the product-specific impact of the new tariffs, identify sectors most affected, and formulate appropriate policy and market diversification strategies to help Philippine exporters remain globally competitive.
