PH eyes further reduction in 19% US tariff on exports

Trade Secretary Cristina Roque on Friday said the Philippine government remains hopeful that the recently announced 19 percent tariff on its exports to the United States can still be lowered, even as the rate is set to take effect on August 1.

The 19 percent tariff, announced by US President Donald Trump, marks a reduction from the earlier proposed 20 percent rate, though still higher than the 17 percent floated in April. Philippine and US officials are currently finalizing the details of the policy, according to Roque.

“For now, since it was already announced by President Trump, then it’s final. But of course, we’re really hoping we can bring it down,” she told reporters during a media interview.

Roque said the Philippines is exploring long-term strategies, including a potential free trade agreement (FTA) with the US, to improve its export competitiveness. However, she emphasized that the government is not willing to offer concessions that could hurt domestic industries, particularly agriculture.

Despite agreeing to a zero percent tariff on several US imports such as medical equipment, vehicles, and soybeans, Philippine negotiators withheld similar access for American agricultural products like rice and sugar.

“For us, we did not give the agriculture [sector] because it might hurt the farmers. It might hurt the agriculture industry,” Roque explained.

In contrast, Indonesia agreed to open its entire market in exchange for a reduced 19 percent tariff—down from an initial 32 percent—on its exports to the US.

Roque noted that if tariff reductions are marginal, they may not justify the losses to local sectors. “If the rate is reduced by only a little, it’s not commensurate to what we’re going to lose,” she said.

The Federation of Philippine Industries welcomed the move to shield sensitive sectors from the agreement, particularly agriculture and manufacturing.

Elizabeth Lee, chair of the industry group, said allowing zero percent tariffs on imported raw materials not manufactured locally could help reduce production costs without harming domestic suppliers. However, she stressed the need for structured industry consultations and transparent disclosure of products included in the trade agreement.

“Conducting structured consultations with industry stakeholders, coupled with transparent disclosure of products covered by the agreement, can help mitigate potential adverse impacts,” Lee said.

Roque affirmed that government support remains focused on inclusive growth. “At the end of the day, we all want growth, but it has to be balanced, fair, and locally anchored,” she said.