The Philippine Exporters Confederation, Inc. (PHILEXPORT) hailed a sweeping 6-3 decision by the United States Supreme Court striking down former President Donald Trump’s “reciprocal” tariffs, calling it a decisive lift of an unfair burden on Philippine exporters.
In a ruling issued on Friday, February 20, the high court invalidated the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), declaring them unconstitutional. For Philippine exporters, who absorbed an average 19 percent levy throughout 2025, the decision restores breathing room and reinforces confidence in a rules-based trading order.
“The invalidation of the previous 19 percent tariff provides much-needed legal relief to our members,” said PHILEXPORT President Sergio Ortiz-Luis Jr. Despite steep headwinds, he noted, exporters pushed total outbound shipments to a record USD84.4 billion last year.
Yet relief was quickly tempered.
Within days, the US administration imposed a new 10 percent global tariff under Section 122 of the Trade Act of 1974, effective February 24, 2026. While the across-the-board levy adds cost pressure, PHILEXPORT acknowledged that its universal application preserves the Philippines’ relative competitiveness.
“While this is an additional cost, its global application means the Philippines maintains its relative competitiveness against other trading nations,” Ortiz-Luis said.
The group remains cautiously optimistic that strategic sectors will weather the adjustment.
Semiconductor and electronics exports—worth USD47 billion in 2025—are expected to retain exemptions tied to their critical role in the US technology supply chain. More than USD1 billion in agricultural exports, including coconut oil, pineapples and mangoes, also remain shielded under specific carve-outs.
Still, PHILEXPORT stressed that Section 122 tariffs are capped at 150 days unless extended by Congress, creating a narrow but vital window for diplomacy. The message: celebrate the court victory—but negotiate fast.
