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12.5% US tariff on PH exports rattles exporters

Philippines | Visayas

12.5% US tariff on PH exports rattles exporters

By Calvin Cordova

TRUMP (AP)

CEBU CITY – A group of exporters in Cebu expressed concern over the imposition of an additional 12.5 percent tariff by the United States on Philippine exports.

The Philippine Exporters Confederation (Philexport)-Cebu chapter supported calls for the Philippine government to engage with the Office of the United States Trade Representative (USTR) to cushion the impact of the new tariff.

In a statement, the group said the additional tariff hike will weigh heavily on Philippine exporters especially on small and medium enterprises that depend heavily on the US as one of their biggest markets.

"The proposed tariff could reduce the competitiveness of Philippine products in the US market at a time when exporters are already coping with high production costs, expensive logistics, and intense global competition," said Federico Escalona Jr., Philexport Cebu executive director.

President Donald Trump introduced a 12.5 percent tariff on trading partners that failed to comply with adequate safeguards against goods made with forced labor.

Philexport-Cebu said they support ethical labor practices and responsible supply chains, adding that many are regularly audited by international buyers and comply with strict labor standards.

The group emphasized that the Philippines is backing the US’ goal of eliminating forced labor from global trade.

Escalona said instead of enforcing an additional tariff, cooperation and stronger compliance systems should be eyed as a solution.

"Responsible exporters should not become unintended casualties of trade measures intended to address broader policy concerns," he said.

Philexport-Cebu urged the Departments of Trade and Industry, Foreign Affairs, and Labor and Employment, along with the Bureau of Customs, to immediately open talks with USTR officials.

Related Tags

Cebu Exporters US tariff Donald Trump

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