August 12, 2025 | 12:00am
MANILA, Philippines — The Philippines will probably be looking for an exemption from US President Donald Trump’s plan to impose a 100-percent levy on its semiconductor imports, in line with the Workplace of the Particular Assistant to the President for Funding and Financial Affairs (OSAPIEA).
Through the Financial Journalists Affiliation of the Philippines Financial Discussion board 2025 yesterday, SAPIEA Frederick Go stated the federal government could be looking for clarification from the US Commerce Consultant on the implementation of the tariff on semiconductors.
“We’re lobbying that our semiconductor exports likewise be exempted, if there’s such a factor,” he stated.
Final week, Trump stated semiconductor and chip imports could be topic to a 100-percent tariff, however not for corporations which might be manufacturing within the US or have dedicated to take action.
It stays unclear when the levy will probably be taking impact.
Go stated that if the US imposes a semiconductor tariff on all international locations, this might be thought-about a best-case state of affairs as it will be as if there isn’t any levy.
“For those who imagine that each firm on the earth will shut down all their operations everywhere in the world and reopen all of it in America; in the event you imagine that the labor power of America will need to do meeting, testing, packaging, which is a really extremely guide job; in the event you imagine that every one these corporations will truly abandon all their operations within the Philippines inside a sure time period; in the event you imagine the entire world order will change, then that’s your worst-case state of affairs,” he stated.
He stated what the federal government can do for the sector is to barter for an exemption from the semiconductor tariff.
“We’re negotiating that the semiconductor exports out of the Philippines, which is the ATP – meeting, testing, packaging – be exempted from these,” he stated.
Searched for remark, Semiconductor and Electronics Industries within the Philippines Basis Inc. president Dan Lachica stated in a Viber message that the group welcomes the plan to hunt an exemption.
“We admire the federal government’s efforts to safe exemption for our semiconductor exports,” he stated.
Semiconductor exports are usually not topic to any tariffs due to Part 232 of the US Commerce Enlargement Act of 1962.
The 19 p.c reciprocal tariff imposed by the US on Philippine items doesn’t apply to semiconductor exports.
Earlier, Lachica stated a 100-percent tariff on semiconductor exports getting into the US would impression the Philippine semiconductor and electronics business.
Digital merchandise, together with semiconductors, are the nation’s prime exports.
Philippine exports of digital merchandise reached $21.69 billion within the first semester, up by 5 p.c from $20.63 billion in the identical interval final yr.
Oikonomia Advisory & Analysis economist Reinielle Matt Erece stated in an electronic mail that as semiconductor merchandise and supplies, that are necessary for the manufacturing of chips for electronics make up a big a part of Philippine exports, the tariff enhance could be detrimental to the nation’s exports and total financial progress.
“You will need to pursue each commerce negotiations with the US to get higher phrases for commerce whereas additionally diversifying each the nation’s export locations in addition to merchandise. It’s exhausting to achieve success in worldwide commerce if we are able to export only a few items and if Philippine-made merchandise are usually not as demanded by different international locations,” he stated.
