Although the recent adjustment of the reciprocal tariffs on Philippine exports by the United States, from 20 to 19 percent, is a positive development, it is not a game-changer for the export industry, the Philippine Chamber of Commerce and Industry (PCCI) said on Friday.
“Realistically speaking, a one percent reduction is unlikely to trigger a massive surge in exports. The impact will be most felt by specific industries already exporting the affected goods,” according to PCCI president Enunina Mangio.
Despite this, the PCCI chief stressed that while a one percent reduction is modest, it translates directly to lower costs of Philippine products in the US market versus those of other countries that are facing higher tariffs; provides exporters a bit more flexibility in pricing negotiations; and, particularly for micro, small, and medium enterprises (MSMEs), can translate to meaningful cost savings, more substantial profit margins, and improved price competitiveness.
PCCI emphasized that broader factors, such as overall economic demand, global competition, logistics costs, production challenges (including infrastructure, input costs, and bureaucratic efficiency), and non-tariff barriers (NTBs), often have a far greater impact on export volumes than a single percentage point tariff change.
With this, PCCI called on the government to continue efforts to negotiate more profound and more comprehensive tariff relief across a broader range of product lines, as well as to address NTBs.
And to aggressively implement domestic reforms to improve business and trade, lower logistics and energy costs, promote digital infrastructure, and provide international trade incentives to strengthen competitiveness, improve productivity, and build a resilient and inclusive economy.
“We hope this is just the start,” Mangio said as she urged the Philippine government to negotiate for more product coverage for reduced tariffs; tackle regulatory hurdles such as sanitary and phytosanitary (SPS) measures and standards recognition, which can be more significant obstacles than tariffs themselves; revisit discussions on a more comprehensive bilateral trade agreement or deeper integration under existing frameworks like the Indo-Pacific Economic Framework (IPEF); and, negotiate for the expansion of trade preference programs like the GSP (Generalized System of Preferences),” the group stated.
Just playing smart
Meanwhile, civic leader and businessman Dr. Jose Antonio Goitia defended President Ferdinand Marcos Jr. and US President Donald Trump’s recent trade and security agreement, calling it a bold and strategic move.
“This is not selling out. This is playing smart,” Goitia said. “We’ve been taught to see diplomacy as a trap. But that kind of fear is exactly what holds us back.”
The agreement removes tariffs on US goods entering the Philippines, while imposing a 19 percent duty on Philippine exports to the US.
As some critics say it’s one-sided, Goitia says it’s time to look deeper.
“Trade isn’t just about prices or duties. It’s about access, leverage, and building long-term partnerships,” he explained. “The President didn’t just say yes to a deal. He secured a seat at the table. That alone is already a win.”
He emphasized that instant results should never be used to judge diplomacy.
“This isn’t about quick wins. It’s about building credibility and influence over time. That’s how serious nations operate,” the chairman emeritus of Alyansa ng Bantay sa Kapayapaan at Demokrasya, People’s Alliance for Democracy and Reforms, Liga Independencia Pilipinas and Filipinos Do Not Yield Movement said.
Concerns have also been raised over the agreement’s provisions allowing US investment in mining and energy, with Goitia responding: “We’ve had these natural resources for decades, but most of them are still untouched. If foreign partners are willing to invest and bring in technology, why not? The key is that we set the rules. We stay in charge.”
Goitia also addressed the concerns of local farmers, who worry that the deal will further weaken the agricultural sector.
“Our farmers have been struggling for years, and not because of trade agreements. It’s because we haven’t given them the support they need. This deal should push us to act finally, not sit on our hands again,” he stressed.