Philippine micro, small and medium enterprises (MSMEs) may be forced to downsize operations or exit the United States market entirely due to the 19-percent tariff on all Philippine exports, a legislative advocacy group warned lawmakers.
Export Development Council–Networking Committee on Legislative Advocacy and Monitoring (EDC-NCLAM) chairperson Rami Amer Hourani told a House of Representatives committee that small businesses are the most vulnerable to the new trade duty.
Hourani said these firms already struggle with a challenging business environment characterized by overlapping certification requirements and fragmented government support.
The 19-percent tariff, which took effect in August 2025, has limited the ability of small exporters to absorb higher costs or adapt to shifting market conditions, he said.
Hourani said during an organizational meeting of the House Special Committee on Globalization and the World Trade Organization that domestic compliance rules are often stricter than those imposed on imported products sold in the Philippines, further squeezing local margins.
He said to mitigate the impact on rural livelihoods and domestic supply chains, the government should expand access to financing and strengthen technical assistance for foreign standards compliance.
He called for improved coordination among the Food and Drug Administration, the Department of Agriculture and the Philippine Economic Zone Authority to reduce regulatory costs for small players.
The EDC-NCLAM also recommended stronger market diversification and increased participation in international trade fairs.
The group said protecting the export sector is critical to preserving jobs as businesses face the risk of market withdrawal without targeted government intervention.
