22/02/2026
PHILEXPORT calls for sustained trade dialogue on the 10% global tariff
The Philippine Exporters Confederation, Inc. (PHILEXPORT) has called for sustained dialogues following the landmark ruling by the United States Supreme Court that struck down President Donald Trump’s previous "reciprocal" tariffs as unconstitutional.
While the organization welcomed the restoration of constitutional checks on trade power, it expressed guarded concern over the immediate imposition of a new 10% global tariff.
Relief after legal clarity
The 6-3 Supreme Court decision on February 20 invalidated the sweeping tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). For Philippine exporters, who faced an average "reciprocal" levy of 19% throughout 2025, this ruling represents a significant victory for a rules-based trading system.
"The invalidation of the previous 19% tariff provides much-needed legal relief to our members," said Sergio Ortiz-Luis Jr., President of PHILEXPORT. "Our exporters showed incredible resilience last year, driving total exports to a record $84.4 billion despite these headwinds. This ruling removes a major barrier that was unfairly penalizing Philippine craftsmanship and industry."
Assessing the new 10% global baseline
In the wake of the court ruling, the US Administration has announced a new 10% global tariff under Section 122 of the Trade Act of 1974, effective February 24, 2026.
“While this is an additional cost, its "global" application means the Philippines maintains its relative competitiveness against other trading nations,” said Ortiz Luis.
Key considerations for the Philippine export sector include:
• Sectoral exemptions: PHILEXPORT is optimistic that critical sectors, particularly Semiconductors and Electronics (which reached $47 billion in 2025), will continue to be shielded by existing exemptions due to their role in the US tech supply chain.
• Agricultural stability: More than $1 billion worth of Philippine agricultural exports—including coconut oil,pineapples, and mangoes—remain under specific exemptions, ensuring these vital industries stay competitive.
• Temporary nature: Under US law, the Section 122 tariff is capped at 150 days unless extended by the US Congress. PHILEXPORT views this window as a crucial time for bilateral negotiation.