US ADDS 12.5% TARIFF ON PHILIPPINE EXPORTS AMID FORCED LABOR CRACKDOWN

The United States has imposed an additional 12.5-percent tariff on Philippine exports after determining that the Philippines failed to effectively enforce measures prohibiting the importation of goods produced through forced labor.

The decision was announced Friday (Manila time) by the Office of the United States Trade Representative (USTR) following a review of 60 trading partners. The investigation examined whether countries have and effectively enforce laws banning the importation of goods made with forced labor.

According to the USTR, the Philippines "has failed to impose and effectively enforce a forced-labor import prohibition," prompting the additional tariff.

"The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it's well past time for our trading partners to do the same," US Trade Representative Jamieson Greer said in a statement.

The United States is the Philippines' largest export market. Based on trade data cited by the USTR, Philippine exports to the US reached $13.44 billion in 2025, accounting for 15.9 percent of the country's total exports despite declining from $14.5 billion in 2024.

Business leaders warned that the additional tariff could pose challenges for exporters while highlighting the need to expand into other markets.

Philippine Exporters Confederation, Inc. (PHILEXPORT) President Sergio Ortiz-Luis Jr. said the latest US action underscores the importance of diversifying the country's export destinations.

"Trump is trying to weaponize tariffs against countries," Ortiz-Luis told the Philippine Daily Inquirer. "He is trying to look for other ways to impose tariffs. He does not even consider that the Philippines is an ally of the United States."

Ortiz-Luis added that relying heavily on a single export market exposes the country to policy changes abroad and urged both government and exporters to strengthen trade ties with other economies.

The new tariff is part of a broader US policy aimed at encouraging trading partners to strengthen measures against forced labor in global supply chains. Philippine officials have yet to issue a detailed response on the USTR's findings or whether they will seek discussions with US authorities regarding the additional tariff.