The Confederation of Philippine Exporters (Cebu) Foundation, Inc. is urging the Philippine government to immediately engage the United States to clarify policy uncertainties triggered by the temporary 10% global tariff imposed by U.S. President Donald Trump.
In a position paper, the group—also known as PHILEXPORT Cebu—called on Malacañang, through the Department of Trade and Industry and the Department of Foreign Affairs, to urgently seek formal clarification from U.S. trade authorities on several critical issues affecting Philippine exports.
Among the key concerns raised by the exporters’ group are:
- Whether previously negotiated tariff arrangements remain valid during the Section 122 implementation period
- The scope, duration, and possible exemptions under the temporary 10% global tariff
- The prospects for sector-specific carve-outs for Philippine export industries
PHILEXPORT Cebu said exporters remain uncertain whether previously negotiated tariff schedules for Philippine products “remain operative or are temporarily superseded” by the uniform 10% global tariff.
“Clarity is urgently needed to protect the planning assumptions of exporters,” the organization stressed.
The trade group noted that the U.S. policy shift came after the Supreme Court of the United States invalidated tariffs imposed under the International Emergency Economic Powers Act. In response, Trump invoked Section 122 of the Trade Act of 1974 to implement a temporary 10% global tariff, a move that has introduced fresh uncertainty in international trade.
“For the Philippines, a long-standing trading partner of the United States, the abrupt shift raises policy, legal, and strategic concerns requiring immediate but measured response,” PHILEXPORT Cebu said.
The group warned that the evolving tariff environment could result in further shifts in tariff structures, particularly amid tensions between U.S. judicial and executive authorities.
For export-driven sectors—including electronics, semiconductors, garments, processed food, and machinery components—such volatility could disrupt pricing structures, contracts, and supply-chain commitments.
PHILEXPORT Cebu also raised concerns over the absence of an automatic refund mechanism for exporters who may have absorbed part of the tariff burden through price concessions to maintain competitiveness.
Another potential risk is the reported U.S. exploration of additional tariff measures on semiconductors, one of the Philippines’ largest export industries.
To mitigate the impact of unpredictable U.S. trade policy, the group urged the Philippine government to pursue a broader export risk-mitigation strategy alongside diplomatic engagement.
This includes accelerating export market diversification, particularly toward ASEAN, the European Union, and member economies of the Regional Comprehensive Economic Partnership (RCEP). Exporters should also be encouraged to incorporate tariff contingency clauses in contracts, while government agencies provide advisory support to businesses heavily dependent on the U.S. market.
PHILEXPORT Cebu also called for urgent domestic reforms to strengthen Philippine export competitiveness, including streamlining customs and logistics processes, reducing energy and regulatory compliance costs, and expanding fiscal and non-fiscal incentives for high-value manufacturing.
The group further stressed the need for close coordination between trade authorities and financial regulators to manage potential volatility in export earnings and exchange rates.
“The current U.S. tariff realignment represents not merely a trade policy adjustment but a structural uncertainty in global commerce,” the position paper signed by PHILEXPORT Cebu president Apolinar Suarez Jr. and chair Porferio Montesclaros Jr. said.
“For the Philippines, the prudent course is strategic patience combined with proactive engagement and diversification.”