Philippine exports fell in June 2025 to $7.021 billion from $7.314 billion in May 2025. However, this was still 26.1 percent higher compared to the $5.568 billion recorded in June 2024, according to the Philippine Statistics Authority (PSA) on Wednesday.

“The country’s total export sales in June 2025 amounted to $7.02 billion, indicating an annual increment of 26.1 percent from the $5.57 billion total export sales in the same month of the previous year. In May 2025, the total export sales registered an annual increase of 15.5 percent, while an annual decrease of 17.3 percent was recorded in June 2024,” the PSA said.

The commodity group with the highest annual growth in export value in June 2025 was electronic products at $897.38 million, followed by other mineral products ($238.98 million) and machinery and transport equipment, which saw an annual increase of $127.66 million.

The United States was the top destination for Philippine exports, accounting for $1.21 billion or 17.3 percent of total export value in June 2025, followed by Hong Kong ($1.07 billion, 15.2 percent); Japan ($974.80 million, 13.9 percent); China ($733.99 million, 10.5 percent); and Singapore ($311.96 million, 4.4 percent).

External trade

The PSA said total external trade in goods last month hit $18.00 billion, marking an annual growth of 16.3 percent from the $15.47 billion recorded in June 2024.

“In May 2025, the total external trade in goods recorded an annual increase of 5.0 percent, while an annual decrease of 11.1 percent was registered in June 2024,” the PSA reported.

Of the total external trade in June 2025, 61.0 percent consisted of imports while the remaining 39.0 percent were exports.

Trade deficit narrows

The country’s trade deficit — or the gap between the value of exports and imports — stood at $3.95 billion in June 2025, reflecting a narrower deficit with an annual decline of 8.8 percent.

In May 2025, the trade deficit posted an annual decrease of 23.2 percent, while an annual increase of 10.1 percent was recorded in June 2024.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said the June 2025 trade deficit was among the lowest in nearly four years or since October 2021, as imports dropped to levels last seen in February 2022.

“While exports increased to among 2.5-year highs or since November 2022; amid US President Donald Trump's higher tariffs/reciprocal tariffs since April 2, 2025 and the 90-day pause since April 9, 2025 to a 10% baseline tariff (except for China's 30%) led to some frontloading of exports in previous months to hedge before any further increase in US import tariffs; lower Fed rates by -1.00 since September 2024 and lower BSP rates by -1.25 since August 2025 that supported lower costs of financing/borrowings by importers and exporters,” he said.

He warned that Trump’s higher US import tariffs, reciprocal tariffs, trade wars, and protectionist policies could drive up US inflation and unemployment, potentially slowing global trade, investment, employment, and GDP growth.

“In turn, it could slow down Philippine economic/GDP growth, thereby slowing down both exports and imports,” Ricafort added.