The Philippine government remains optimistic about strengthening its economic partnership with the United States, even as it carefully assesses the implications of Washington’s recent decision to impose a 20 percent tariff on all Philippine goods entering the U.S. market starting August 1.
While expressing concern over the decision, Special Assistant to the President for Investment and Economic Affairs Frederick Go emphasized on Thursday that the government is determined to maintain a constructive and productive engagement with its top trading partner.
In a Palace press briefing, Go said they received the latest reciprocal tariff from the United States for the Philippines.
“We are concerned that the US has decided to impose a 20 percent tariff on Philippine exports,” Go said.
“The fact remains, however, that the 20 percent rate is the second lowest among all reciprocal tariffs that the US has imposed on the region, the lowest being the 10 percent of Singapore,” Go said.
Go said the Philippines continues to value its strategic relationship with the United States, and is actively seeking a Bilateral Comprehensive Economic Agreement or a possible Free Trade Agreement (FTA) to create a more sustainable and equitable trade partnership.
Go and his team are scheduled to travel to Washington next week to begin the “second stage” of high-level negotiations.
Go will be joined by Department of Trade and Industry (DTI) Secretary Ma. Cristina A. Roque and Undersecretaries Ceferino Rodolfo and Allan Gepty.
While the 20 percent tariff will apply broadly, Go clarified that key Philippine exports to the U.S. may be spared.
Notably, semiconductor exports, which are critical to both nations’ supply chains, have been exempted from the new tariffs due to their importance to U.S. national security.
“Our number one export sa Amerika ay semiconductors and electronics. Ang good news po sa atin sa ngayon ay karamihan ng ating exports ng semiconductors ay hindi covered ng tariffs,” Go said.
As trade negotiations progress, the Philippine government reaffirms its commitment to maintaining mutually beneficial economic ties with the U.S. while protecting the interests of Filipino exporters, workers, and industries. | PND
