The Philippine Exporters Confederation, Inc. (PHILEXPORT) is urging ongoing discussions with U.S. authorities following a recent Supreme Court ruling that struck down former president Donald Trump’s “reciprocal” tariffs as unconstitutional. While welcoming the decision, the group expressed cautious concern over the introduction of a new 10 percent global tariff.
The 6-3 Supreme Court decision on 20 February, invalidated the previous sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
For Philippine exporters, who had faced an average 19 percent levy throughout 2025, the ruling offers relief and reinforces a rules-based trading system.
“The invalidation of the previous 19 percent tariff provides much-needed legal relief to our members,” said Sergio Ortiz-Luis Jr., PHILEXPORT president. “Our exporters showed incredible resilience last year, driving total exports to a record $84.4 billion despite these headwinds. This ruling removes a major barrier that was unfairly penalizing Philippine craftsmanship and industry.”
Following the ruling, the U.S. administration announced a 10 percent global tariff under Section 122 of the Trade Act of 1974, effective 24 February. Ortiz-Luis noted that while this adds a cost, its uniform application helps preserve the Philippines’ competitiveness relative to other trading nations.
PHILEXPORT highlighted key considerations for exporters: critical sectors such as semiconductors and electronics—which generated $47 billion in 2025—are expected to remain under exemptions due to their role in the U.S. tech supply chain.
Over $1 billion in agricultural exports, including coconut oil, pineapples, and mangoes, are also shielded. The Section 122 tariff is temporary, capped at 150 days unless extended by Congress, giving exporters a critical window for bilateral negotiations.
The organization emphasized that continued dialogue will be essential to navigate the new tariff landscape while protecting the gains of Philippine industries in international trade.