Phl presses for trade deal after US slaps 20% tariff on exports

The Department of Trade and Industry (DTI) on Friday expressed concern over the United States’ move to impose a 20 percent reciprocal tariff on Philippine exports, despite continued diplomatic efforts and trade talks between both nations.

In a statement, the DTI said it received formal notification of the new tariff policy and acknowledged it as part of a broader recalibration by the US aimed at correcting trade imbalances and supporting its domestic manufacturing sector.

“We are concerned that, notwithstanding our efforts and constant engagements, the US still decided to impose a 20 percent tariff on Philippine exports,” the agency said.

However, the DTI noted that the 20 percent rate remains the second-lowest among reciprocal tariffs the US has imposed on countries in the region, behind Singapore’s 10 percent.

The agency underscored that the Philippines remains “a reliable and strategic economic partner” of the US and will continue to engage in negotiations in good faith to pursue a “better and more comprehensive bilateral trade agreement.”

While recognizing Washington’s concerns over trade deficits, the DTI warned against the broader implications of unilateral tariff actions on the global economy.

“Global supply chains are deeply interconnected, and unilateral trade impositions will have adverse effects on the global economy. Thus, we believe in the need for constructive engagement to address trade issues,” the statement read.

The DTI confirmed that a Philippine delegation is set to travel to Washington next week — prior to the tariff’s implementation on 1 August — to hold high-level discussions with US counterparts. The delegation will include officials from other government agencies as part of a coordinated response.

In the meantime, the Philippines reaffirmed its commitment to pushing for major economic reforms, strengthening its investor-friendly climate, and expanding trade partnerships to diversify its export markets.