Palace: 19% US-imposed tariff has minimal effect on PH economy

MANILA, Philippines — Malacañang has downplayed the still higher than expected 19-percent reciprocal tariff the United States has imposed on exported Philippines products, saying it will have minimal effects on the country’s economy.



“Based on records, the Philippines is not dependent on US exports. In other words, there is an effect, but its impact on the country is not that significant,” Palace press officer Undersecretary Claire Castro said in a virtual briefing on Wednesday.

She noted that of the exports of the Philippines, only 16 percent go to the US. And of the Philippines goods bound for the US, 67 percent come from the semiconductor and electronics industries, which are covered by laws on zero tariffs under global trade agreements.

According to Malacañang, President Ferdinand Marcos Jr. said the 1 percentage point reduction from the supposed 20 percent tariff to be enforced by August 1 was already a “significant achievement” for the country, following his meeting with US President Donald Trump.

The new rate, however, was still higher than the initial 17-percent tariff announced in April.

The Philippines also has the second-lowest reciprocal tariff imposed by the US in Southeast Asia, behind Singapore’s 10 percent.

“Because of this, the country will further strengthen efforts to make Philippine exports more competitive in the global trade,” Castro said.

READ: Trump: US to charge 19% tariff on PH goods

In turn, the Philippines offered an open market to the United States and zero tariffs on certain goods, according to Malacañang.

“President Marcos confirmed that the open market and zero tariff agreements between the Philippines and the United States apply only to certain markets,” Castro said, without identifying these specific markets.

Marcos announced in Washington DC that Manila opened the automobile market, meaning it would no longer charge tariffs on US imports in this sector. /das

(2025/07/23-12:55)

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