US tariff delay boosts chip exports

The country’s electronic exports are now projected to grow by as much as seven percent this year, reversing the previous estimate of flat growth, as the United States’ (US) planned higher tariffs on foreign-made semiconductors have so far remained merely a threat.

- By DEXTER BARRO II

According to Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), electronic exports will grow between five to seven percent compared to last year’s value of $42.6 billion.

“(The tariffs] should not have any major effects because we are still at zero tariff,” said SEIPI President Danilo Lachica.

Lachica earlier estimated that exports would remain flat, with a slim chance of one to two percent growth, amid US President Donald Trump’s threat to impose tariffs on semiconductor shipments to America.

Back in August, Trump threatened to slap tariffs, going as high as 300 percent, with exemptions only for those that manufacture in the US or have committed to doing so.

A Reuters report on Nov. 20, citing information from undisclosed US officials, said the Trump administration has since delayed its plan to impose these tariffs, with no set date for its issuance.

The Philippines is subject to a 19 percent reciprocal tariff rate by the US, but semiconductors and nearly half of the country’s total exports have already been exempted.