Philexport-Cebu urges swift government action on 12.5% tariff

A GROUP of exporters in Cebu is urging the Philippine government for immediate interventions following the United States’ decision to impose additional tariffs on Philippine exports.

The Philippine Exporters Confederation (Philexport)-Cebu Chapter joined calls for national officials to engage with the Office of the United States Trade Representative (USTR) in cushioning the impact of the new tariff.

In a press statement issued Friday, July 24, the group warned that the proposed tariff hike could hit Philippine exporters hard, particularly small and medium enterprises that depend heavily on the US as one of their biggest markets.

Aside from reducing the country’s competitiveness, the fresh wave of tariffs would mean additional burden to exporters, added Federico Escalona Jr., Philexport Cebu executive director.

"The proposed tariff could reduce the competitiveness of Philippine products in the U.S. market at a time when exporters are already coping with high production costs, expensive logistics, and intense global competition," said Escalona.

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

But according to Philexport-Cebu, exporters here already supported ethical labor practices and responsible supply chains, adding that many are regularly audited by international buyers and already comply with strict labor standards.

Likewise, the country shares Washington's goal of eliminating forced labor from global trade.

But Escalona argued that the solution should come through cooperation and stronger compliance systems rather than punitive tariffs.

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

Philexport Cebu also 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.

It also called for the government to strengthen the country's labor compliance and supply chain traceability systems and to set up a public-private task force to help exporters meet evolving international requirements.

Beyond diplomatic engagement, the group asked the government to roll out support programs that would help exporters adopt enhanced compliance systems, and to speed up efforts to diversify export markets beyond the United States.

Meanwhile, Escalona expressed confidence that the issue can be resolved without long-term damage to the country's trade standing.

"The Philippine export sector has weathered numerous global challenges over the past decade," he said.(RBE)

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