Philippines wants chip exports exempted from US tariff

MANILA, Philippines — The Philippines will be seeking an exemption from US President Donald Trump’s plan to impose a 100-percent levy on its semiconductor imports, according to the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).

During the Economic Journalists Association of the Philippines Economic Forum 2025 yesterday, SAPIEA Frederick Go said the government would be seeking clarification from the US Trade Representative on the implementation of the tariff on semiconductors.

“We are lobbying that our semiconductor exports likewise be exempted, if there is such a thing,” he said.

Last week, Trump said semiconductor and chip imports would be subject to a 100-percent tariff, but not for companies that are manufacturing in the US or have committed to do so.

It remains unclear when the levy will be taking effect.

Go said that if the US imposes a semiconductor tariff on all countries, this would be considered a best-case scenario as it would be as if there is no levy.

“If you believe that every company in the world will shut down all their operations all over the world and reopen it all in America; if you believe that the labor force of America will want to do assembly, testing, packaging, which is a very highly manual job; if you believe that all these companies will actually abandon all their operations in the Philippines within a certain period of time; if you believe the whole world order will change, then that is your worst-case scenario,” he said.

He said what the government can do for the sector is to negotiate for an exemption from the semiconductor tariff.

“We are negotiating that the semiconductor exports out of the Philippines, which is the ATP – assembly, testing, packaging – be exempted from those,” he said.

Sought for comment, Semiconductor and Electronics Industries in the Philippines Foundation Inc. president Dan Lachica said in a Viber message that the group welcomes the plan to seek an exemption.

“We appreciate the government’s efforts to secure exemption for our semiconductor exports,” he said.

Semiconductor exports are not subject to any tariffs because of Section 232 of the US Trade Expansion Act of 1962.

The 19 percent reciprocal tariff imposed by the US on Philippine goods does not apply to semiconductor exports.

Earlier, Lachica said a 100-percent tariff on semiconductor exports entering the US would impact the Philippine semiconductor and electronics industry.

Electronic products, including semiconductors, are the country’s top exports.

Philippine exports of electronic products reached $21.69 billion in the first semester, up by five percent from $20.63 billion in the same period last year.

Oikonomia Advisory & Research economist Reinielle Matt Erece said in an email that as semiconductor products and materials, which are important for the production of chips for electronics make up a large part of Philippine exports, the tariff increase would be detrimental to the country’s exports and overall economic growth.

“It is important to pursue both trade negotiations with the US to get better terms for trade while also diversifying both the country’s export destinations as well as products. It is hard to be successful in international trade if we can export very few goods and if Philippine-made products are not as demanded by other countries,” he said.