Under President Donald Trump, the United States levied a 17 percent tariff on goods imported from the Philippines. This was part of the broader “Liberation Day” trade program, which Trump instituted to apply to more than 180 countries.
The new tariffs, announced on April 2 through Trump’s Truth Social site, will go into effect on April 9.
Countries Affected
The Philippines is amongst the countries affected by the policy change. Some other Southeast Asian nations have much harsher tariffs-viz. 46 percent for Vietnam, Thailand 36 percent, Indonesia 32 percent and Malaysia 24 percent. Singapore has it easier with a 10 percent tariff. Likewise, China and the European Union have tariffs at 34 and 20 percent respectively.
According to Trump, these tariffs are a means of addressing existing trade imbalances. The President noted that by unequal trade deficits, America has contributed to economic contraction in the manufacturing sector and that it is vital to safeguard American industries and jobs. This kind of power is presented under the International Emergency Economic Powers Act of 1977.
Philippine Government Response
Despite the imposition of new tariffs, the Philippine government has been downplaying the real economic implications of such tariffs. Palace Press Officer Claire Castro said that in view of inputs from the Department of Trade and Industry (DTI), Philippine exports to the U.S. do not make up a major share of the country’s overall trade and are therefore not expected to make much disruption.
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“We know the situation, if necessary we will respond. But for now, the impact seems to be minimal,” said Castro in a Palace briefing in Filipino.
She said that the Philippines will not meddle with U.S. economic decisions if higher tariff structures in other countries would bring some investors into a position that makes the Philippines as an alternative location which look very attractive considering much higher levies.
Trade Relations with the US
Although at one time the U.S. served as the Philippines’ prime trading partner for $12.1 billion worth of exports in 2024 representing 16.6 percent of the total value of Philippine total exports and imports from the United States included such values as $8.2 billion. So, during the same year, resulting in a trade surplus of $3.9 billion.
Trade Secretary Cristina Roque previously reassured that the bilateral trade relationship between the two countries will remain stable. “Our trade deficit with the U.S. is quite small, so at this point, there’s no immediate cause for concern,” she said last month.
While government officials generally see little effect in the short term, some analysts caution that longer-term policy could disrupt supply chains and raise costs for Philippine exporters. At the same time, the Republic may be considering trade adjustments or even free trade agreements with the U.S. in order to alleviate potential risks in the future.
