The Department of Trade and Industry (DTI) has expressed cautious optimism over the United States’ announcement of reciprocal tariffs affecting imports from the Philippines.
Under the executive order signed by U.S. President Donald Trump, goods from the Philippines will be levied a 17% tariff starting April 9, 2025—referred to as “Liberation Day.”
This rate is notably lower than those imposed on other ASEAN member states, such as Cambodia (49%), Laos (48%), Vietnam (46%), Myanmar (46%), Thailand (36%), and Indonesia (32%). The Philippines, alongside Singapore (10%), faces the second-lowest tariff in the ASEAN region.
“We view with guarded optimism that the recent U.S. imposition of reciprocal tariffs will provide strategic opportunities for the Philippines to improve its economic relationship with the U.S. As we have expected, the Philippines is among the least hit among key exporters to the U.S.,” DTI Secretary Ma. Cristina Roque said in a statement.
“In light of the new tariffs announced, the Philippines can be in a better position than other neighboring countries because of the relatively lower tariffs imposed,” she added.
Despite the more favorable tariff rate compared to its neighbors, Philippine exports to the U.S.—which include electronic products, coconut products, and agricultural goods—will still be impacted by the new 17% tariff.
The U.S. and the Philippines have long maintained a robust trade relationship, with the U.S. being a key trading partner. In 2024, U.S. goods trade with the Philippines amounted to USD23.5 billion, with the U.S. importing USD14.2 billion worth of goods and exporting USD9.3 billion. The two nations have a longstanding partnership that includes agreements under the 1989 bilateral Trade and Investment Framework Agreement (TIFA).
Roque noted that certain products like copper ores, concentrates, and integrated circuits are exempt from the new tariffs. However, she said, the Philippine government is closely examining the potential effects on agricultural products, particularly food exports, which are not included in the exemptions.
“The task at hand right now for DTI and other government agencies is how to act fast and take advantage of this new development,” she said.
The Philippine government sees this as an opportunity to strengthen trade relations with the U.S., particularly in sectors such as automobiles, dairy products, and frozen meat, with plans to engage in discussions toward a possible bilateral free trade agreement.
In the meantime, the Philippine Stock Exchange (PSE) saw a decline in market activity following the tariff announcement. The PSE index dropped by 1% to 6,084.19 points on Friday, as concerns over the impact on global supply chains and international trade caused investors to sell off shares. The Mining and Oil sector took the biggest hit, plummeting 2.89%.
Meanwhile, the Philippine peso showed resilience, closing stronger at 56.82 to the U.S. dollar, from 57.06 the previous day. The country’s currency has maintained a relatively strong position against the dollar, trading within the 56-level range throughout the day.
As the Philippines adjusts to these changes, DTI Secretary Roque remains optimistic about the nation’s ability to navigate the new tariff landscape. “We are committed to working closely with the United States to uphold clear and predictable trade rules to ensure a mutually beneficial trade environment,” she said.
The Philippine government continues to study the long-term effects of these tariffs on the nation’s export sectors and is prepared to take proactive measures to mitigate potential disruptions.
