Cebu exporters urge action amid U.S. tariff uncertainty

Cebu-based exporters are calling on the Philippine government to immediately seek clarity from the United States following the temporary 10 percent global tariff imposed by President Donald Trump, warning that uncertainty is disrupting pricing, contracts, and supply chains for key sectors.

The Confederation of Philippine Exporters (Cebu) Foundation, Inc. (PHILEXPORT Cebu) said in a position paper that formal dialogue with US trade authorities is needed to address whether previously negotiated tariffs remain valid, the scope and exemptions of the new tariff, and the prospects for sector-specific carve-outs. “Clarity is urgently needed to protect planning assumptions of exporters,” the group stressed.

The temporary tariff followed a US Supreme Court ruling that invalidated previous tariffs under the International Emergency Economic Powers Act.

Structural uncertainty in global commerce

Trump’s invocation of Section 122 of the Trade Act of 1974 has introduced what PHILEXPORT Cebu calls “structural uncertainty in global commerce,” particularly affecting electronics, semiconductors, garments, processed food, and machinery exports.

The group also flagged concerns over the lack of automatic refund mechanisms for exporters who may have absorbed part of the tariff, as well as the potential imposition of additional duties on semiconductors, one of the Philippines’ largest export items.

Export market diversification urged

To mitigate the impact, PHILEXPORT Cebu urged the government to pursue export market diversification, strengthen domestic competitiveness through streamlined customs, lower energy and compliance costs, and expand incentives for high-value manufacturing.

Advisory support for US-dependent exporters and coordination between trade and financial authorities are also recommended to manage potential peso-export earnings volatility.