Economy

The Philippines will continue negotiating with the Office of the United States Trade Representative (USTR) after Washington imposed a 12.5 percent tariff on most Philippine exports under its forced labor-related trade review, with Manila maintaining that the assessment remains open and subject to further evaluation.

The Philippine Economic Zone Authority (PEZA) kept its investment momentum in 2026, with approved projects surging nearly 67 percent in the first seven months as export-oriented manufacturers and high-value industries continued to expand despite an uncertain global economy.

Philippine exporters are warning that the US decision to impose an additional 12.5 percent tariff on most Philippine exports could weaken the country's competitiveness in its largest export market, putting pressure on manufacturers and micro, small, and medium enterprises (MSMEs) already navigating a volatile global trade environment.

The Philippines has concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with Chile, securing its first free trade agreement with a Latin American country as Manila steps up efforts to diversify export markets and strengthen supply chains.

A bigger paycheck is no longer enough to keep many Filipino workers from looking elsewhere.