PHILIPPINE exports worth about $6.25 billion could face higher costs in the United States after Washington’s new 12.5-percent tariff took effect, although government estimates show most of the country’s shipments remain exempt from the additional duty.
The Department of Trade and Industry (DTI) said a preliminary assessment based on 2025 trade data showed that around 34.28 percent of Philippine exports to the US, valued at approximately $6.25 billion, may be covered by the new tariff.
Meanwhile, exports worth about $11.98 billion, or nearly two-thirds of the country’s total shipments to the US, are exempt under the measure.
Among the products excluded from the tariff are major Philippine export items such as semiconductors, integrated circuits, automatic data processing machines, printers, headphones and projectors, as well as automotive parts, aircraft components, coconut products, processed and fresh fruits, cocoa, frozen cassava, taro, pastries and biscuits.
Mineral exports, including copper, nickel and cobalt ores and concentrates, are likewise exempt.
However, the DTI said several labor-intensive export industries remain subject to the additional duty, including leather and travel goods, apparel, footwear, and toys.
On Friday, the US imposed the new tariff after concluding that the Philippines had not adequately prohibited the entry of goods produced through forced labor.
The additional duties took effect at 12:01 p.m. Philippine time on July 24. Products already loaded onto vessels before the deadline and entered for US consumption before 12:01 p.m. Philippine time on July 28 are exempt.
In its submission to the Office of the US Trade Representative (USTR) earlier this month, the trade department argued that forced labor is not a systemic issue in the country’s export sector.
The agency said shipments denied entry into the US over forced labor concerns reached a total of only about $2.71 million, equivalent to roughly 0.01 percent of the $48.25 billion worth of Philippine goods imported by the US from 2023 through the first two months of 2026.
The US remained the Philippines’s largest export market in 2025, accounting for $13.46 billion, or 15.9 percent, of the country’s total exports, based on Philippine Statistics Authority data.
New interagency body
A day before Washington announced its tariff decision, the Departments of Trade and Industry, Labor and Employment (DOLE), and Finance (DOF) signed a Joint Administrative Order (JAO) creating an interagency system to investigate and prohibit the importation of goods produced wholly or partly through forced labor.
Trade Undersecretary Ceferino Rodolfo said the measure has already attracted support from international development partners.
‘The good thing is that we have received offers from multilateral institutions as well as bilateral partners…they want to help us implement this JAO,’ Rodolfo said in a mix of English and Filipino during a virtual press briefing on Friday.
He said several partners have expressed willingness to provide technical assistance and grants to help implement the new policy, noting that they viewed the JAO as strengthening the country’s commitment to promoting decent work and safeguarding supply chains.
Rodolfo added that the interagency committee created under the JAO is already in effect, while implementing rules and regulations are being drafted.
Under the order, the Inter-Agency Committee for the Investigation of Imports Produced by Forced Labor will receive complaints, evaluate evidence and investigate allegations involving imported goods suspected of being produced through forced labor.
The committee is chaired by the DTI, with the DOLE serving as vice chair. Members include the DOF, Bureau of Customs (BOC), Board of Investments and Philippine Economic Zone Authority.
Investigations may be initiated by the committee, referred by government agencies or filed by private individuals, civil society organizations or international groups, provided supporting evidence is submitted.
Importers under investigation will be given 15 days to respond after receiving notice. If substantial evidence is found that goods were produced wholly or partly through forced labor, the committee may recommend that the BOC stop their importation.
The order applies to imported goods before their release from customs custody, with detailed implementing guidelines scheduled for issuance within 90 days.