The umbrella organization for Philippine exporters has warmly welcomed a recent decision by the United States government to exempt several key agricultural products from a significant tariff, a move poised to enhance the competitiveness of Philippine exports and provide a substantial boost to farmers and rural communities.
Key Products Granted Exemption
This positive development stems from an Executive Order issued by U.S. President Donald Trump on November 14, 2025. The order grants an exemption from a 19 percent reciprocal tariff to a list of vital Philippine goods. The exempted products include coconut oil, prepared or preserved coconuts, desiccated coconuts, fruit juices, processed pineapples, bananas other than pulp, dried guavas, mangoes, mangosteen, frozen tuna fillets, rice wafer products, and confectionery items. They join other agricultural exports previously exempted, such as coffee, tea, cocoa, spices, oranges, tomatoes, beef, and selected fertilizers.
Export Leaders Hail Positive Outcome for Philippine Economy
Sergio R. Ortiz-Luis, Jr., the President and CEO of the Philippine Exporters Confederation Inc. (Philexport), emphasized that this is a direct result of persistent collaboration. He stated that the outcome reflects successful engagements with key stakeholders to communicate the necessity of these exemptions, particularly for products not locally produced in the U.S.
The Philippine Chamber of Commerce and Industry (PCCI) also expressed its approval. PCCI President Consul Enunina Mangio highlighted that the exemptions will offer much-needed relief to exporters, help protect jobs, and strengthen the position of Philippine products in one of its most critical markets.
Significant Economic Impact and Future Prospects
The financial implications of this decision are considerable. Department of Trade and Industry Secretary Cristina Roque revealed that the exempted products generated over US$1 billion in export value in 2024, describing them as a lifeline for communities across the Philippines.
Adding to this, Trade Undersecretary and Board of Investments head Ceferino Rodolfo estimated the total annual value of the exempted Philippine products at a staggering $4 billion. Frederick Go, the former Special Assistant to the President for Investment and Economic Affairs, clarified that the exemption followed discussions with U.S. counterparts, which highlighted the limited or non-existent domestic American production of these goods. He affirmed that this move will enhance export competitiveness, increase jobs, and fortify supply chains.
It was also noted that coconut oil, in both its crude and refined forms, remains the Philippines' top agricultural export to the United States. Beyond agriculture, semiconductor shipments valued at $2.5–3 billion have also been exempted from U.S. tariffs. The U.S. continues to be a vital partner for the Philippines, ranking as its third-largest trading partner with bilateral trade reaching $20.3 billion in 2024.
