The Philippines is negotiating with the United States (US) to exempt exports of coconut products from the 19-percent reciprocal tariffs imposed by US President Donald Trump, according to the Department of Trade and Industry (DTI).

DTI Secretary Cristina Roque said the government is working to secure a tariff-free agreement on the country’s coconut exports, including its byproducts, to safeguard the industry from what could be a substantial hit.

The reciprocal tariffs imposed earlier this month by the US apply to Philippine exports of coconut goods.

“We're still under negotiations with the US, so nothing is final yet. The coconut industry is very important to us, and definitely we need to really strengthen the market for this,” Roque told reporters on the sidelines of the 2025 Coconut Philippines Trade Fair last week.

During last week’s Senate hearing on the economic impact of the tariffs imposed by the US, DTI Undersecretary Allan Gepty stated that the government is seeking tariff exemptions for various products, including agricultural commodities and electronics such as semiconductors.

Gepty told senators that these exemptions are meant to protect domestic industries whose main export market is the US.

Coconut products are the country’s top agricultural exports to the US, which include coconut oil, desiccated coconut, and other by-products.

Coconut oil, in particular, was the fourth-most valuable export commodity last year, with total earnings reaching $2.2 billion.

With negotiations still ongoing, Philippine Coconut Authority (PCA) Administrator and CEO Dexter Buted said the best option for coconut exporters is to diversify their market beyond the US.

Buted said Europe, China, and Japan are among the possible markets where coconut exports can be diverted to in order to offset the impact of the tariffs.

He said China and Japan favor the country’s coconut-based food products, whereas Europe is an enticing market for virgin coconut oil and other byproducts.

“But you know, we cannot discount the US. If we move away from the US, we have to divert so that we can still be the number one top exporter of coconut in the entire world,” said Buted.

The official stated that the PCA is closely coordinating with the DTI to facilitate market access for coconut exporters seeking to explore the potential of exporting their products to other countries.

“We work together so that our market can grow in other countries that have little or no tariffs,” he added.

With the growing uncertainties in global trade, the PCA looks to strengthen its support for the export capacity of the local industry.

With the proposed ₱12.5 billion for the Coconut Farmers Industry Development Plan next year, around five percent of which will be directed to boost the presence of small and medium enterprises (SMEs) on the global stage.