The Department of Trade and Industry (DTI) welcomed the recent reduction in the US tariff rate on Philippine exports from 20 percent to 19 percent, calling it a significant step forward for the country’s trade position and investment appeal.
The move follows engagements between Philippine President Ferdinand Marcos Jr. and US President Donald Trump.
The revised tariff rate positions the Philippines favorably among Southeast Asian economies trading with the US, now holding the second-lowest rate in the region after Singapore’s 10 percent. Other ASEAN countries face US tariffs ranging from 19 percent to 40 percent.
“The details are not yet final,” said DTI Secretary Ma. Cristina Roque.
“The Philippines and the United States will still have to negotiate the specifics of the agreement, including products that are covered by market access commitments on both sides,” she said.
The DTI said the lower tariff would enhance the country’s attractiveness to foreign direct investments (FDIs), particularly from companies targeting the US market, as the reduced tariff provides the Philippines a competitive edge as a regional export hub.
Secretary Frederick Go, Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), said the “enhanced market access will enable the Philippines to become a more attractive destination for export-oriented investments, opportunities that might have otherwise gone to our neighbors.”
The DTI and OSAPIEA confirmed that the government would engage closely with stakeholders to ensure the interests of domestic industries are considered during negotiations.
“The concessions we will extend are strategic to the Philippines. These are products that we do not locally produce and are critical inputs to reducing the cost of healthcare, for example,” said Go.
Roque said major domestic agricultural and manufacturing sectors would remain protected and are excluded from the concessions being offered.
The DTI said the forthcoming agreement on reciprocal trade with the US will cover not just tariff reductions but other trade-related provisions. Negotiators are working to finalize the details in a manner that aligns with the country’s international trade commitments and the needs of domestic industries.
“As global trade dynamics evolve, we will actively pursue initiatives to improve the market access of Philippine products worldwide. Our focus is on building resilient, sustainable, and inclusive trade relationships that support long-term growth and prosperity for all Filipinos,” said Roque.
The Philippines is also pursuing free trade agreements with key partners such as Canada, the United Arab Emirates and Chile to expand market access, deepen trade ties, and ensure the continued global competitiveness of Philippine exporters.
