Philippines to Negotiate Reduction of US's Additional 12.5% Tariff

The Philippines is set to negotiate for the reduction of an additional 12.5% tariff imposed by the United States, citing the country's alleged failure to curb the importation of goods produced with forced labor. Philippine Ambassador to the US Jose Manuel Romualdez announced that Department of Trade and Industry (DTI) Undersecretary Allan Gepty will lead the talks. Romualdez expressed hope that the tariff rate could be reduced to 10%, stating, "We are going to negotiate on the basis that we will remove the child labor goods from our list of exports if it is proven to be so." The fresh tariff was announced by the Office of the United States Trade Representative (USTR) on Friday (Manila time) following a months-long investigation into 60 economies. The investigation under Section 301 of the US Trade Act of 1974 aimed to determine if any economies failed to prohibit or effectively enforce a prohibition on the importation of goods produced wholly or in part with forced labor. "Based on the findings in the investigation of the Philippines, considering the public comments, testimony, and the advice of the Section 301 Committee, as well as the advice of advisory committees, and in accordance with the specific direction of the President, the Trade Representative has determined to impose 12.5% tariffs on products of the Philippines," the USTR stated in a notice. Philippine Trade and Industry Secretary Christina Roque acknowledged the US's imposition of unilateral tariffs against 54 countries, including the Philippines, due to "alleged failure to impose and effectively enforce prohibition of imports made by forced labor." She affirmed that the Philippines will continue to engage with the US to emphasize its "strong policy" against forced labor, consistent with various International Labor Organization (ILO) Conventions. "In fact, just yesterday we signed a Joint Administrative Order with DOF and DOLE to provide an institutional mechanism to address the issue of forced labor," Roque added in a statement. The imposition of additional tariffs by the US could impact the Philippines' export industries, particularly labor-intensive sectors. The US views forced labor as a significant human rights violation and is intensifying pressure for its eradication. This situation compels the Philippine government to review its domestic labor practices and align them with international standards. This is also linked to long-standing issues of poverty and labor in the Philippines, making domestic policy improvements crucial for regaining international trade credibility. Source: GMA Money Philippines