By THEPHILBIZNEWS STAFF
Amid ongoing trade talks with the United States, Philippine officials and business leaders are urging Washington to treat the Philippines not just as a trade partner—but as a genuine ally—by offering significantly more favorable tariff rates on Philippine exports.
Special Assistant to the President for Investment and Economic Affairs Frederick Go recently affirmed that while the Philippines will eliminate tariffs on a range of U.S. goods such as autos, soy, wheat, and pharmaceuticals, it has stood firm in protecting its agriculture and fisheries sectors by maintaining tariffs on sensitive imports like rice, corn, pork, sugar, chicken, and fish.
However, what has caught the attention of policymakers and industry stakeholders alike is the modest 1% drop in the U.S. tariff rate on Philippine goods—from 20% to 19%, still higher than the 17% rate announced in April. This marginal reduction comes despite the Philippines already offering expanded trade concessions and continuing to play a critical strategic and economic role in the Indo-Pacific region.
“If we are true allies, we deserve more than a symbolic 1% cut. Our alliance should be reflected not just in words, but in real economic opportunities,” said Sergio R. Ortiz-Luis, Jr., Honorary Chairman of the Philippine Chamber of Commerce and Industry (PCCI) and President of PHILEXPORT.
“We are opening up our markets to more U.S. goods while protecting our vital sectors. The U.S., in turn, should show genuine reciprocity.”
The Philippines currently enjoys one of the lowest U.S. tariff rates in ASEAN, second only to Singapore at 10%. However, industry experts argue that a rate closer to or below the regional average is warranted—given the Philippines’ longstanding diplomatic, economic, and security alignment with the U.S.
Go also confirmed that tariff discussions are ongoing, with technical working groups ironing out the details to ensure a balanced, mutually beneficial agreement.
Despite the uneven tariff structure, Philippine exporters remain resilient. A recent survey shared by Ortiz-Luis on CNBC International revealed that 90% of Filipino exporters reported business as usual with U.S. buyers, even showing increased trade in May and June.
“We’re not asking for favors—we’re asking for fair, ally-level treatment,” Ortiz-Luis emphasized.
As negotiations continue, the Philippines is expected to push for more substantial tariff reductions, aligning with its strategic role in the region and the principles of a truly reciprocal partnership.
