Senator Imee Marcos has sounded the alarm over the potential fallout of the United States’ move to impose 100% tariff on Philippine semiconductor exports, a sector valued at USD 4.5 billion to USD 6 billion in annual shipments to the US.

“We cannot underestimate the devastating impact these recent U.S. trade decisions may have on our semiconductor exports,” Marcos said.

“It’s disheartening to learn that our century long diplomatic relations not just as a strategic ally, but also as a trusted and reliable trade partner to the U.S. have only resulted to this. Regardless, the Philippines must not remain a passive observer. We need a plan — not just false hope,” she added.

While firms with US investments are exempt, local manufacturers involved in chip packaging, testing, and assembly face serious risks. The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) has warned of major job losses and reduced competitiveness if the full tariff is enforced without a strong national response.

To shield the sector, Marcos urged the government to pursue targeted U.S. exemptions, secure contingency contracts with customers, and swiftly diversify export markets.

“The US is not the only market in the world. The Department of Trade and Industry (DTI) and the Department of Foreign Affairs (DFA) must act urgently to develop markets aside from the United States,” she said.

The senator also recommended creating “U.S.-linked production lanes” to retain American buyers, moving up the value chain to produce less price-sensitive goods, and co-investing in capabilities more likely to attract U.S. support.

“If we keep relying on patience and pleading, our industry will collapse before any solution arrives. We must act now — seek new markets, enforce our own policies, and protect our workers. We cannot just stand by while one of our country’s biggest sources of livelihood is being pulled apart. Saving the semiconductor industry is also saving the future of the Philippine economy,” Marcos stressed.