The Philippine Chamber of Commerce and Industry (PCCI) stated that the government must intensify its efforts to expand the country’s export markets to maintain the competitiveness of local industries amid the increase in tariffs on Philippine goods by the United States (US).

In a statement, the PCCI said it respects the sovereign right of the US to implement a 20 percent tariff rate on Philippine goods entering the trade giant.

The prominent business group, however, warned that this would bring “significant challenges” to local industries that primarily export to the US market, including industries within their value chain and the workforce.

“This development underscores the importance of diversifying our export markets, strengthening regional trade partnerships, and investing in domestic competitiveness,” it said.

The Department of Trade and Industry (DTI) said it is committed to expanding the country’s trade partnerships with other countries to create more market opportunities for local industries.

This was said in response to the US government’s decision to raise the tariff rate against Philippine goods to 20 percent from an initial 17 percent.

Despite the increase in taxes, the country remained the second-lowest tariff rate among member states of the Association of Southeast Asian Nations (ASEAN), but now joined by Vietnam, which earlier secured a deal to cut its tariff from a steep 46 percent.

The Philippines is aiming to reach its own agreement with the US next week, with the government’s trade delegation scheduled to meet its American counterparts.

The PCCI commended the government’s move to hold negotiations with the US, expressing optimism that this would result in a “more equitable and sustainable trade relationship.”

“We are hopeful that through a constructive dialogue, both governments will uphold a mutually beneficial trade relationship,” the group said.

“Now more than ever, our focus must be on fostering stable, rules-based trade grounded in shared prosperity and mutual respect,” it added.

Further, the PCCI said the government should be more proactive moving forward by providing a more robust support to industries by funding programs to improve research, development, technology, and market intelligence

The group said there should also be initiatives to improve the efficiency of the country’s supply chain, enhancing cost competitiveness, and addressing infrastructure woes.

“To remain viable in a shifting global market, we must accelerate investments in automation, logistics, and workforce upskilling,” it added.

The PCCI said it is ready to work closely with government agencies, exporters, and international partners to mitigate the impact of the increased tariffs to ensure the continued success of the country’s industries.