Philippine exporters are grappling with uncertainty following the implementation of a new 10 percent global tariff by the United States (US), leaving businesses unsure of how the measure will affect shipments.

Philippine Exporters Confederation Inc. (PHILEXPORT) president Sergio R. Ortiz-Luiz Jr. said the sudden policy shift has put exporters “insecure” and “in limbo” as they try to gauge the potential impact.

The tariffs, signed into law by US president Donald Trump on 20 February, took effect on 24 February. Trump has also threatened to raise the levy to 15 percent in the coming months.

Unclear at the moment

“It is unclear at the moment how the new levy will affect Philippine exports,” Ortiz-Luis said in a recent live interview.

Despite last year’s 19 percent US tariff on Philippine goods, the country managed to exceed export projections because electronics and agricultural products, which make up the bulk of shipments to the US, were excluded from the duties.

Whether the new 10 percent tariff applies to the Philippines remains uncertain, he added. “We don’t really know what will happen. We are in limbo,” he said in a mix of Filipino and English.

Talks should continue

Ortiz-Luis emphasized that the Philippines has been preparing for higher tariffs through market diversification and ongoing negotiations for trade agreements with other countries, including Canada and Middle Eastern nations. He noted that talks with the US should also continue to protect export opportunities.

Malacañang has assured that the Philippine government will maintain close cooperation with the United States to safeguard bilateral trade relations, even after the Supreme Court invalidated Trump’s broader global tariffs.

Stronger domestic support for exports

The PHILEXPORT chief also called for stronger domestic support for exporters, warning that current measures are insufficient. He pointed out that Philippine exporters face challenges in financing, trade promotion, product development and overseas exhibition participation.