Just yesterday, we published an article explaining why the Philippines wasn’t expected to be directly affected by Trump’s new tariffs. At that time, most analysts—including some in the Philippine government—believed that our small trade deficit with the U.S. would keep us off the radar.
But everything changed after the full list of tariff rates was released during what U.S. President Donald Trump dramatically called “Liberation Day.” As of April 2, 2025, the announcement confirmed that the Philippines is now facing a 17% tariff on all goods exported to the U.S.—effective April 9, 2025—a major policy shift that caught many off guard.
What is Trump’s Liberation Day?
Trump’s “Liberation Day” is not about politics or war. It’s about trade. On April 2, 2025, Trump announced a sweeping new set of import tariffs under the banner of “reciprocity.” His argument? If other countries charge high taxes on American goods, then the U.S. should do the same to level the playing field.
As part of this plan, a 10% baseline tariff was applied to all countries. But additional country-specific rates were layered on top of that. These “reciprocal tariffs” are calculated to reflect the existing trade imbalances or tariff rates of other nations.
Who Got Hit the Hardest?
Several countries were slapped with very high tariffs. China was hit with a 34% rate, a clear continuation of Trump’s long-standing trade war against Beijing. Vietnam received a 46% tariff, while Thailand saw 36%.
India, despite ongoing trade negotiations with Washington, wasn’t spared either. It now faces a 26% tariff, which is likely to strain their already fragile bilateral talks. Even close allies like Japan and the European Union received 24% and 20% respectively.
And then—perhaps unexpectedly—the Philippines appeared on the list with a 17% tariff, also starting April 9.
What Changed for the Philippines?
Until April 2, trade officials in Manila believed we would avoid major tariffs because we don’t run a large surplus with the U.S. But Trump’s logic wasn’t just about trade volume—it was about mirroring the tariff levels countries already impose on American goods.
Since the Philippines imposes higher average tariffs on U.S. exports than it receives in return, we got hit with the 17% figure. It’s still lower than many of our neighbors, but it’s enough to raise concerns across several sectors.
A 17% tariff means Filipino goods entering the U.S. will suddenly become more expensive. That makes them less competitive compared to goods from countries with lower or no new tariffs.
Sectors like electronics, garments, and food exports may be the most affected. The higher cost could result in reduced demand, which in turn may lead to slower export growth, job impacts, and reduced investor confidence.
Senate President Chiz Escudero has already called for urgent government action, asking economic managers to prepare contingency plans to protect Philippine exporters and cushion the impact.
Trump’s Liberation Day has quickly turned from a symbolic event into a real-world policy shift with global consequences. While the Philippines avoided the worst of the tariffs, we’re no longer unaffected.
