Philippine apparel exporters are racing against time, scrambling to squeeze shipments into a fleeting 150-day window after the US trimmed newly imposed tariffs from 19 percent to as low as 10 percent, or potentially 15 percent.
The sudden shift, tied to trade actions under the administration of President Donald Trump, has injected both urgency and uncertainty into the USD1-billion garment export sector.
Robert Young, president of the Foreign Buyers Association of the Philippines (FOBAP), said members agreed in an emergency meeting to front-load confirmed orders and fast-track pending contracts, with the cooperation of major US retail clients.
“We expect competitor countries to front-load as well,” Young said, noting the entire supply chain is shifting into high gear.
Originally facing a 19 percent tariff, Philippine exporters briefly enjoyed a comparative edge over rivals like Vietnam, which had been slapped with proposed duties of 20 to 40 percent. But the relief is murky. US Trade Representative Jamieson Greer signaled this week that some countries could see rates climb to 15 percent or higher, without naming specifics.
Even at a uniform 10 percent, structural disadvantages remain. Philippine garments are already 10 to 15 percent pricier than those from Vietnam, Bangladesh, Sri Lanka and Myanmar, largely due to the lack of backward integration in textiles, higher power and labor costs, and steep logistics expenses.
The Philippines accounts for just 3 percent of total US apparel imports, dwarfed by Vietnam’s roughly USD49-billion export machine. Emerging producers such as Laos and Cambodia are also expanding capacity.
Shortages of container vans pose another hurdle, though exporters hope idle inbound boxes can be redeployed for outbound rush orders.
For now, the strategy is to ship fast, diversify to markets like Australia and Canada, and fight to stay on buyers’ radar before tariff winds shift again.
