The Philippine Chamber of Commerce and Industry (PCCI) on Thursday expressed concern over the United States’ decision to impose a 20 percent tariff on Philippine exports, warning that the additional duties could hurt the country’s competitiveness in the global market.

“We respect the sovereign right of the US to implement a 20% increase in tariff on Philippine exports to the United States effective August 1, 2025. We are concerned, however, about the significant challenges this poses to the competitiveness of our industries with significant exports to the US market, industries that are within their value chain, and their workers,” said PCCI President Enunina Mangio in a statement.

Apart from the Philippines, US President Donald Trump also imposed the 20 percent tariff on Vietnam—a key investment rival in the region. Goods suspected of being transshipped through Vietnam, particularly those originating from China, will face an even higher rate of 40 percent.

Other countries in Asia and the ASEAN region were given varying tariff rates: 25 percent for Japan, South Korea, and Malaysia; 30 percent for China; 32 percent for Indonesia; 35 percent for Bangladesh; 36 percent for Thailand and Cambodia; 40 percent for Laos and Myanmar; while Singapore received the lowest rate at 10 percent.

Mangio said the latest development highlights the need for the Philippines to diversify its export markets, strengthen regional trade partnerships, and enhance domestic competitiveness.

“We call on our government for greater support to our local industries by increasing the budget for research, development, technology, and market intelligence, and improving our supply chain efficiency, infrastructure, and cost competitiveness. To remain viable in a shifting global market, we must accelerate investments in automation, logistics, and workforce upskilling,” Mangio added.

She also urged the Philippine government to sustain its dialogue with Washington to work toward a more equitable and resilient trade relationship.

“We are hopeful that through a constructive dialogue, both governments will uphold a mutually beneficial trade relationship. Now more than ever, our focus must be on fostering stable, rules-based trade grounded in shared prosperity and mutual respect,” she said.

Mangio assured the business community’s support, noting that PCCI “stands ready to work closely with our government agencies, exporters, and international partners to mitigate the impact of this tariff and to ensure that Philippine industries continue to thrive on the global stage.”

To that end, a high-level delegation led by Special Assistant to the President for Investments and Economic Affairs Secretary Frederick Go, Trade Secretary Cristina Roque, and Undersecretaries Allan Gepty and Ceferino Rodolfo is scheduled to travel to Washington, D.C. next week to begin the second stage of negotiations.