PH negotiating with U.S. over new forced labor tariffs, seeks exemptions

Metro Manila, Philippines –  The Philippine government is negotiating with the United States to reduce newly-imposed tariffs on certain Philippine exports and secure possible exemptions after Washington cited concerns over goods allegedly produced with forced labor.

Philippine Ambassador to the United States Jose Manuel Romualdez said Trade Undersecretary Allan Gepty will head Manila’s negotiating panel in discussions with the Office of the U.S. Trade Representative (USTR).

“The negotiations,  the U.S. has always been open to countries, especially the Philippines, to explain further on what they have found as a way to be able to impose these tariffs,” Romualdez said.

He added that Washington has also been receptive to granting exemptions for Philippine exports that are not produced in the United States.

Romualdez said the latest tariffs stem from a U.S. investigation into alleged forced labor rather than the reciprocal tariffs previously imposed by the Trump administration.

“We’re negotiating to still bring that down on the basis of what we think is not quite correct about the 301,” he said, referring to the U.S. government’s findings on forced labor in exported goods.

The U.S. government announced additional tariffs on imports from 60 economies, including the Philippines, after determining they had failed to adequately prohibit or enforce bans on the importation of goods made with forced labor. Philippine exports covered by the action will face an additional 12.5% tariff.

In a separate statement, Trade Secretary Cristina Roque said the Philippines is engaging the United States to underscore that it has a strong policy against forced labor consistent with various International Labour Organization conventions.

The trade chief said the government had just signed a Joint Administrative Order with the Departments of Finance and Labor and Employment to establish an institutional mechanism to address forced labor concerns.

“The Philippines will continue to engage with the U.S. to emphasize that the country has a strong policy against forced labor,” the statement said.

The DTI added that Manila remains committed to preserving its strategic relationship with Washington and ensuring bilateral trade remains “intact, resilient and stable,” noting that Philippine exports, particularly electronics, semiconductors and key agricultural products, support U.S. supply-chain stability.