The United States has imposed an additional 12.5 percent tariff on most Philippine exports after concluding that the country failed to adequately block imports made with forced labor, raising the total duties on many Philippine goods entering the US.

The measure follows a Section 301 investigation by the Office of the United States Trade Representative (USTR), which found that the Philippines “has failed to impose and effectively enforce a forced-labor import prohibition,” placing it among 60 economies deemed to have safeguards weaker than those of the United States.

Forced labor ban

“The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” US Trade Representative Jamieson Greer said.

Within ASEAN, Singapore, Thailand and Vietnam will also be subject to the 12.5 percent tariff, while countries outside Southeast Asia facing the same rate include Australia, Brazil, China, Iraq, Israel, New Zealand, Saudi Arabia, South Africa, Türkiye and the United Arab Emirates.

Among the highest facing new tariffs

The Philippines is among the Southeast Asian countries facing the highest additional tariff rates, a development that could weigh on exporters given that the United States remains the country’s largest export market. Philippine exports to the US totaled $13.44 billion in 2025, accounting for 15.9 percent of total outbound shipments, although this was down from $14.5 billion in 2024.

The latest duty follows Washington’s earlier decision to reduce its temporary tariff on Philippine goods to 10 percent after a US Supreme Court ruling in February struck down President Donald Trump’s blanket reciprocal tariff enforcement.

Before that, the United States had imposed a 19- to 20-percent tariff following trade talks between President Trump and President Ferdinand R. Marcos Jr. in August last year.

Strong policy

In response to the latest tariffs, Trade Secretary Cristina Roque maintained that the country has a strong policy against forced labor consistent with various International Labor Organizations (ILO) Conventions.

“In fact, just yesterday we signed a Joint Administrative Order with DoF and DoLE to provide institutional mechanism[s] to address the issue of forced labor,” she said in a Friday statement.

“In the meantime, we will continue to value our strategic relationship with the US especially in ensuring that our trade remains intact, resilient, and stable,” added Roque.

Meanwhile, Philippine Chamber of Commerce and Industry president Perry Ferrer acknowledged the new tariffs would impact the country’s overall competitiveness, while Federation of Philippine Industries chairman Elizabeth Lee said the Philippines still shoulders a 2.5 percent premium over regional neighbors Indonesia and Malaysia despite providing some headroom.

Possibility to move down to the 10% bracket

“Further, because the tariff is tied directly to forced labor rules, there might be a possibility to move down to the 10 percent bracket — or gain extra product waivers — once we can show those concerns don’t apply,” Lee added.

Malacañang likewise emphasized that the Philippines has a strong policy against forced labor.