PH top export semiconductors, electronics spared from Trump's 20% tariff — Go
'Our number one export to America were semiconductors and electronics… As of today, a very, very large of that is exempted from the reciprocal tariffs,' Go said at a Palace briefing on Thursday.
This came after Trump issued his tariff notices to America's various trading partners including the Philippines, which he slapped with a 20% duty, higher than what he previously announced reciprocal tariff rate of 17% in April.
The presidential investments adviser said there are 'fillers' from US trade counterparts if ' they will continue to keep them [semiconductors] tariff-free or if they will put some tariffs but the good news for us, at the moment, is our semiconductors are not covered by tariffs.'
Go explained that 'based on the rules, all exports are covered by the 20% tariff, but America has sector specific tariffs and sector specific exemptions.'
'So it has nothing to do with us. So the semiconductors that I'm talking about that are exempted are not because of us, it's because America chose to exempt certain semi-conducted sectors, because they deemed it important to their, for example supply chain or deemed that important to their national security. So they exempted certain semiconductor categories,' he said.
Data from the Philippine Statistics Authority (PSA) showed the US was the country's top export destination in 2024, accounting for 16.6% or $12.14 billion of the total export receipts of $73.27 billion.
Meanwhile, electronic products were the Philippines' top export accounting for 53.4% or $39.09 billion of the total —of this amount, the share of semiconductors to the total was 39.8% or $29.17 billion.
Trump's reciprocal tariff policy was intended to target countries that have significant trade imbalances with America.
Data from the US Trade Representative showed America's goods trade with the Philippines totaled an estimated $23.5 billion in 2024.
Broken down, the US' goods exports to Manila stood at $9.3 billion, while its imports amounted to $14.2 billion resulting in a goods trade deficit with the Philippines of $4.9 billion in 2024, up 21.8% year-on-year.
Ultimate goal: Free trade agreement
While the negotiation of the earlier Philippine trade delegation to the US resulted in a 20% tariff rate, versus 17%, Go still expressed optimism that the government can forge a free trade agreement (FTA) with America.
He said the country 'remains committed to continuing negotiations in good faith to pursue a better and more comprehensive bilateral trade agreement or if possible, an FTA (free trade agreement).'
'We will go there next week and we will try to bring this down if we can. But what I was trying to say in my statement earlier is more important than trying to bring down the reciprocal tariffs… the bigger thing to accomplish is if we can sign a Free Trade Agreement or an FTA or a bilateral comprehensive economic partnership agreement,' Go said.
'Myself together with DTI Secretary Cris Roque and Undersecretary Perry Rodolfo and Undersecretary Allan Gepty will be flying to the United States next week – this is actually a scheduled trip to the United States even today's announcement 'no. So, there will be meetings next week amongst the trade representatives ng Amerika po at ng Pilipinas (of America and the Philippines),' he said.
'So, for me, our objective is a bilateral economic partnership agreement, which the US has told us that this is a possibility. I think for us, very clearly, the discussion on the reciprocal tariff is just like a 'stage one'. There is still a stage two, which is the bilateral partnership agreement that we seek and to us, ever since it's very clear that this is the more important thing for us,' he added. — RSJ, GMA Integrated News
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