By Justine Irish D. Tabile, Reporter
THE Department of Trade and Industry (DTI) said that business will continue as usual as the government awaits the final tariff rate that the US will impose on Philippine goods.
“For now, it is 10% for everyone for 90 days. After the 90 days, that is when we will see what the tariffs will be,” DTI Secretary Ma. Cristina A. Roque told reporters in mixed English and Filipino on Tuesday.
Last week, US President Donald J. Trump announced a 90-day pause on the higher reciprocal tariffs on most of the country’s trading partners.
Association of Southeast Asian Nations (ASEAN) member countries are facing some of the highest duties. Cambodia is facing a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia (24%), and Brunei (24%).
The Philippines was slapped with a 17% tariff, which is the second lowest after Singapore’s baseline rate of 10%.
While a 90-day pause is in place, countries including the Philippines will face a blanket 10% duty until July.
“For those that have orders already, it is business as usual,” Ms. Roque said.
She said she is still hoping to meet her US counterparts before the 90-day pause ends “so that we can really discuss the tariff rate of the Philippines.”
“If the tariff of 17% will be reimposed after 90 days and the tariffs of our ASEAN neighbors are higher than ours, of course, that’s advantageous for us. But we don’t know what will happen after 90 days. So, it’s hard to speculate until we get to talk to my counterpart there in the US,” she added.
The US was the country’s top export market last year, accounting for $12.14 billion, data from the Philippine Statistics Authority showed.
Of the total, 53% or $6.43 billion were electronic products. These include $3.79 billion worth of semiconductor exports.
In a presidential memorandum on April 11, the US clarified that semiconductors are exempt from the local tariffs.
However, Mr. Trump said on Sunday that he is looking at announcing tariff rates on imported semiconductors over the next week.
A notice in the Federal Register showed that the US Secretary of Commerce has initiated an investigation to determine the effects of semiconductor imports on national security.
In light of this, the Philippine Trade secretary said that the government will always try to negotiate for what is best for the country.
“That is what we want to happen. But for the semiconductor, it is business as usual because some of them already have orders that are already being shipped. So, it is still business as usual for now,” she added.
Meanwhile, Philippine Institute for Development Studies Emeritus Research Fellow Rafaelita M. Aldaba said that the US’ reciprocal tariffs are likely “to trigger significant exposure risks with asymmetric impacts on developing countries.”
She said this will depend on the country’s export composition, dependence on US markets, and capacity to adjust trade and production structures.
“For smaller economies like the Philippines, the new tariff regime presents both an opportunity and a challenge. The relatively lower tariff rate creates openings for niche export expansion, particularly in sectors with tight price margins and high tariff sensitivity,” she added.
Citing an independent analysis, Ms. Aldaba said that at the current exemption coverage, the Philippines’ tariff cost is expected to reach $1.8 billion.
Meanwhile, tariff costs in Vietnam are expected to reach $53.9 billion, $18.9 billion for Thailand, $8.6 billion for Indonesia, and $7.5 billion for Malaysia.
“The Philippines is the least exposed among the five ASEAN countries analyzed. It faces the lowest reciprocal tariff rate of 17%, and about 30% of its US exports are exempted, especially high-value electronics and semiconductors,” Ms. Aldaba, a former DTI undersecretary, said.
“While non-exempted goods like garments, processed foods, and wood products still account for around 12.4% of total exports, these are generally thin-margin, labor-intensive goods that do not dominate trade value,” she added.
Further, she said that the Philippines is “well-positioned” to attract trade relocation from high-tariff countries, especially for price-sensitive sectors like apparel, furniture, and food processing.
“Compared to its regional peers, the Philippines benefits from a relatively lower reciprocal tariff rate, offering a strategic opening to enhance its export competitiveness, attract reconfigured global supply chains, and amplify its strengths in digital and service-driven industries,” she said.
“The Philippines should strategically capitalize on its lower tariff rate by improving exemption coverage, broadening its product portfolio, and opening new export markets,” she added.
