The Philippines is expected to return to the negotiating table following a constructive round of talks with the United States on Washington’s new reciprocal tariff measure.
Department of Trade and Industry Secretary Ma. Cristina Roque described the initial engagement with the US Trade Representative (USTR) as a strong start, saying that the dialogue is part of an ongoing process.
“The negotiation is a process, not a one-time meeting. We believe the meeting went very well and our points were well received,” Roque said.
Leading the Philippine delegation was Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, who stressed the government’s commitment to protecting local industries amid shifting trade dynamics.
Go said the government remains optimistic about achieving a mutually beneficial deal that would support domestic growth and ensure long-term market access for Philippine goods.
The 17-percent tariff, temporarily suspended for 90 days in favor of a 10-percent rate, impacts a significant share of Philippine exports to the US, valued at about $12.14 billion in 2024.
Key sectors impacted include electronics, machinery and agricultural products such as coconut oil and seafood.
A study by the Congressional Policy and Budget Research Department (CPBRD) estimates potential export revenue losses of up to $1.9 billion due to the tariff.
The Department of Trade and Industry (DTI) is exploring the possibility of lowering tariffs on US goods as a reciprocal measure.
Meanwhile, the Philippine Economic Zone Authority (PEZA) is advocating for reduced US tariffs on key exports from economic zones, including electronics and automotive parts, under a potential bilateral free trade agreement.
While the immediate economic impact of the tariffs is a concern, Philippine officials view the situation as an opportunity to renegotiate trade terms and potentially establish a more favorable trade framework with the US.
Officials said the ongoing discussions aim to mitigate adverse effects on local industries and ensure the resilience of the Philippine export sector in the face of global trade challenges.