U.S. imposes 12.5% tariff on Philippine exports

The United States has imposed a new 12.5 percent tariff on exports from the Philippines, citing the country's failure to adequately prevent the importation of goods produced with forced labor. The tariff, announced by the U.S. Trade Representative on July 24, 2026, also applies to 59 other trading partners, with rates ranging from 10 to 12.5 percent. The measure took effect as a temporary 10 percent worldwide tariff expired.

U.S. Trade Representative Jamieson Greer stated that the action aims to correct a human rights abuse and a distortive trade practice, noting the United States has enforced its own forced labor import ban for nearly a century. The decision follows months of investigations into 60 economies, which concluded the Philippines had failed to impose and effectively enforce a prohibition on goods made with forced labor.

The tariff is expected to impact the Philippine economy significantly, as the United States is its largest export market, accounting for 15.9 percent of total exports valued at $13.46 billion in 2025. However, several key Philippine exports are exempt from the new levy. These exemptions include semiconductors, the country's top export commodity, as...