Gov't to ask US to exempt PHL chip exports from tariffs

THE PHILIPPINE GOVERNMENT is seeking an exemption from US tariffs on select exports, particularly semiconductors, a move aimed at safeguarding one of the country’s most important industries.

- Justine Irish D. Tabile and Aubrey Rose A. Inosante

“We are working on getting several of our exports exempted,” Special Assistant to the President for Investment and Economic Affairs Frederick D. Go told reporters on the sidelines of the Economic Journalists Association of the Philippines Economic Forum on Monday.

He said an exemption can be sought for products that an exporting country produces in abundance and cannot be produced in the US.

In particular, he said that the government hopes that the US will exempt Philippine-made semiconductor chips from steep tariffs.

“We are hoping that they view the work we do here in the Philippines, which is ATP (assembly, testing, and packaging), to be part of the process that the US may not really want to do. So, we are hoping... and we have expressed this, that ATP is a process that the semiconductor companies would probably want to outsource,” he said.

The Philippines is a key player in the ATP segment of semiconductor production. Electronics and semiconductors are the country’s single largest export category.

Last week, US President Donald J. Trump announced a 100% tariff on imports of semiconductors in a bid to bring back manufacturing to the country. However, he offered exemptions to companies currently manufacturing in the US and planning to do so.