Philippine manufacturers are pressing the government to cut non-tariff barriers and administrative delays as a weaker peso pushes up the cost of imported raw materials, machinery, and fuel.
Federation of Philippine Industries Chairperson Elizabeth Lee said faster customs clearance for manufacturing inputs could help businesses absorb costs they cannot control, particularly as the peso trades beyond P62 to the US dollar.
“One way to help mitigate increased import costs is to adjust non-tariff barriers during periods of high exchange rate volatility,” Lee said. “Expedited clearance for manufacturing inputs and removing administrative delays can reduce demurrage, storage, and port handling fees, directly offsetting foreign exchange landing cost increases.”
The pressure comes as imports continue to outpace exports. Philippine Statistics Authority data showed imports surged 19 percent to USD 92 billion in the first seven months of 2026, compared with USD 55 billion in exports, leaving the country with a USD 37-billion trade deficit.
Much of those imports, however, feed production rather than consumption. More than 85 percent consisted of essential inputs, including raw materials and intermediate goods at 38.2 percent, capital equipment at 27.9 percent, and mineral fuels at 19.4 percent.
For manufacturers, a weaker peso means each dollar needed for components, machinery, and fuel costs more in local currency. Exporters may benefit from foreign exchange gains, but companies dependent on imported inputs face a tougher calculation.
Higher interest rates are adding to the squeeze by making it more expensive to borrow for expansion, equipment, and modernization.
“A higher interest rate cannot fix global supply chains or reduce the dollar cost of imported crude oil, fertilizer, or raw materials,” Lee said.
FPI said reducing costs within the country could give manufacturers some breathing room while global prices and exchange rates remain outside their control.
Without such relief, companies could eventually pass higher production costs to consumers, putting further pressure on purchasing power and demand while making Philippine manufacturers less competitive.
