Reciprocal Tariffs: The US and the Philippines

The second portion of this article takes into account related developments as of April 20, 2025.

- ANDREW JAMES GERARD RUIZ

Part 2

Note that per Section 2 of EO 14266, signed on April 9, 2025, US President Donald Trump suspended the implementation of the country-specific ad valorem rates of duty for most countries, including the Philippines, for a period of ninety days, or until July 9, 2025, at 12:01 a.m. EDT.

So, does data from the Philippines confirm the existence of a trade deficit that the US incurs relative to its trade with the Philippines? According to data from the Department of Trade and Industry (DTI), the Philippines exported a total value of $12.12 billion in exports, while importing a total value of $8.165 billion, for the calendar year 2024. Using the formula of the USTR, this would result in a trade deficit of $3.96 billion.

Moving forward, given this trade deficit, are all goods exported from the Philippines to the US subject to the reciprocal tariff?

It actually does not look that way.

Section 3(b) of EO 14257 states that goods mentioned in Annex II shall not be subject to the ad valorem rates of duty in the same EO. These include all automobiles and automotive parts subject to the additional duties imposed pursuant to several laws, copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals and energy and energy products. Annex II refers to specific goods classified under Chapters 05, 25, 26, 27, 28, 29, 30, 31, 32, 34, 36, 38, 39, 40, 44, 48, 49, 71, 72, 74, 75, 79, 80, 81 and 85.