Exporters lower target for 2025

MANILA, Philippines — The country’s umbrella group of exporters has lowered its export projection for this year, citing the impact of the 19-percent tariff imposed by the United States on shipments coming from the Philippines.

Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr. told reporters the group expects the country’s total exports covering both goods and services this year to reach “between $105 billion and $110 billion.”

Last month, Ortiz-Luis said the group was hopeful that total exports could reach $110 billion this year.

The latest export outlook is lower than the targets set under the Philippine Development Plan (PDP) and Philippine Exports Development Plan (PEDP).

While the group earlier decided to follow the export goal under the PDP, he said this may no longer be attainable due to the US tariff.

Under the PDP, the export target, initially set at $113.42 billion for this year, was adjusted to $115.49 billion.

The PEDP, meanwhile, has a higher export goal for this year at $163.6 billion.

Ortiz-Luis said some firms have halted exports to the US due to the tariff imposed by US President Donald Trump.

He also said some have opted to temporarily stop exports amid uncertainties related to the tariffs.

Citing a study from the University of the Philippines’ Center for Integrative and Development Studies, he said the country could lose $2.2 billion worth of export revenues in the second half due to new duties slapped by the US.

He also said garments, leather goods, wearables, furniture and coconut-based products are the most vulnerable exports.

While the US started imposing a 19-percent tariff on Philippine goods last Aug. 7, the levy does not cover electronic and semiconductor shipments, which account for the biggest share in the Philippines’ merchandise exports.

Uncertainties remain, however, as Trump earlier announced a plan to impose tariffs on semiconductor imports from firms that do not move production to the US.

Should the US decide to slap tariffs on its semiconductor imports, Ortiz-Luis said Philippine electronic exports are still expected to post a flat growth this year.

Latest data from the Philippine Statistics Authority showed that the country’s exports of electronics climbed by 7.2 percent to $25.61 billion from January to July compared to last year’s $23.88 billion.

Exports of Philippine goods amounted to $48.62 billion in the seven-month period, 14 percent higher than the $42.69 billion in the same period a year ago.

While Trade Secretary Cristina Roque earlier said the government is looking at setting up a loan facility for exporters hit by the US tariff, Ortiz-Luis said some exporters, particularly the small players, are not bankable.

He said what is needed is for the government to increase the budget of the Department of Trade and Industry (DTI) so the agency could support exporters in their participation in trade fairs and in exploring new markets.

“The budget of the DTI should be increased because there are a lot of expectations from the DTI,” he said.

The DTI and its attached corporations have proposed a P12.4-billion budget for 2026.