US Slaps 12.5% Tariff on Philippine Goods Over Failure to Curb Forced Labor Imports

The United States is imposing a new 12.5% tariff on Philippine goods entering America due to the country’s failure to curb the importation of goods produced with forced labor. The decision was announced Friday (Manila time) by the Office of the United States Trade Representative (USTR) as part of an investigation under Section 301 of the US Trade Act of 1974, which examined 60 economies for their prohibition and enforcement against goods made with forced labor. According to the USTR notice, based on the investigation findings concerning the Philippines and in accordance with the President's direction, the Trade Representative has determined to impose 12.5% tariffs on products of the Philippines. This action stems from an alleged failure to prohibit or effectively enforce a prohibition on the importation of goods produced wholly or in part with forced labor. Philippine Trade and Industry Secretary Cristina Roque acknowledged the US's unilateral imposition of tariffs, noting it is based on the alleged failure to enforce prohibitions on imports made by forced labor. However, she emphasized that the Philippines maintains a strong policy against forced labor, consistent with International Labor Organization (ILO) conventions. Secretary Roque also highlighted that the country recently signed a Joint Administrative Order with the Department of Finance and the Department of Labor and Employment to establish an institutional mechanism to address forced labor issues. Secretary Roque further stated that the Philippines values its strategic relationship with the US and is committed to ensuring trade remains intact, resilient, and stable, especially as Philippine exports, including electronics, semiconductors, and key agricultural products, contribute to US supply chain stability. This move is part of the US's long-standing and rigorous enforcement of its forced labor import ban, urging trading partners to adopt similar measures. USTR Ambassador Jamieson Greer stated that this action aims to correct a human rights abuse and a distortive trade practice, ultimately improving the welfare of workers globally. The imposition of these additional tariffs follows the expiration of a 10% baseline tariff on Philippine goods entering the US, which had been in place since February after the US Supreme Court declared a reciprocal tariff policy unconstitutional. USTR data shows that US goods trade with the Philippines totaled an estimated $26.9 billion in 2025, with imports from the Philippines increasing by 25.4% year-on-year to $17.8 billion. Other countries facing tariffs include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom, with varying rates. The US also imposed tariffs on certain products from the European Union, Taiwan, Japan, Korea, and Switzerland.