Philippine business chamber voices concern over new US tariff

A leading Philippine business group said Friday it was very concerned by a new 12.5 percent US tariff that the Trump administration has said is linked to forced labour concerns.

George Barcelon, chairman of the Philippine Chamber of Commerce and Industry, said the new rate was high and would make industries less competitive. He said he expected the country's trade department to appeal the levy.

The tariff is the latest in a series of US levies on the Philippines, a country of 116 million people and Washington's only treaty ally in Southeast Asia. A 19 percent tariff announced in 2025 was struck down by the US Supreme Court. It was later replaced by a 10 percent surcharge on imports that was due to expire Friday.

Barcelon said the child labour grounds cited by the United States were "very unclear".

A 2024 US Labor Department report listed Philippine products including coconuts and copra meal as having inputs produced with child labour. The report also noted that many countries were listed because they were more transparent in addressing the problem.

Philippine Trade Secretary Christina Roque said the country had a strong policy against forced labour that was consistent with International Labor Organization conventions. She said the Philippines had signed off on new mechanisms aimed at the issue one day earlier.

Philippine Ambassador to the United States Jose Manuel Romualdez said the new tariff was much lower than the 19 percent imposed in 2025, but that the Philippines planned to negotiate it downward. He said Undersecretary Allan Gepty would negotiate with the US government and that there was no timeline for the process.

The United States is the Philippines' largest export market, accounting for about 16 percent of goods sold. China, Japan, South Korea and dozens of other countries were also hit with the higher 12.5 percent tariff. Cambodia was given a 10 percent rate.

It was not immediately clear which Philippine products might avoid the new charges. Electronic components, which make up about two-thirds of Philippine exports, have previously been exempted.