Philippines Prepares for US Tariff Impact
Labor Department Formulates Measures as 19% Levy Looms
The Philippine Department of Labor and Employment (DOLE) is actively developing strategies to mitigate the potential repercussions of a 19 percent tariff that the United States government plans to impose on products manufactured in the Philippines. These preparations are underway amidst ongoing discussions about economic adjustments following the nation’s recent State of the Nation Address.
Anticipating Economic Shifts
Labor Secretary **Bienvenido Laguesma** confirmed that his department is anticipating the effects of the new US tariff. Speaking at the 2025 Post-State of the Nation Address discussions in San Juan City, **Laguesma** stated, “We are formulating measures because we are also anticipating it (possible impact). As we implement our programs, we also continue to observe any movement.”
The Secretary acknowledged that trade and industry shifts invariably affect both workers and investors. “During the discussions today related to trade and industry, there is always an impact on our workers and investors. It is not only workers who will be affected, but also investors,”
he explained. The DOLE maintains labor and employment plans with projections for job creation and potential losses.
The manufacturing sector is expected to be particularly sensitive to the tariff implementation. **Laguesma** mentioned the department’s Adjustment Measures Program (AMP) as a tool to guide affected entities, especially small businesses.
Navigating Competitive Markets
“We cannot say that it has no impact. It has an impact on the costs of shipment of our products, and of course, other countries, with lower tariffs, will be very competitive, particularly those that have access to the supply chain of materials,”
**Laguesma** observed. He noted that these competitive pressures could influence market dynamics for Philippine goods.
The announcement of the 19 percent tariff rate by US President **Donald Trump** comes after an earlier proposal of 20 percent. This policy shift could significantly affect export volumes and pricing, with broader implications for Philippine industries and their workforce. For instance, the World Trade Organization reported that tariffs can increase the cost of imported goods for consumers and businesses, potentially slowing economic growth in affected sectors (WTO).
