Exporters and furniture producers have assailed the 17% tariff imposed on Philippine exports by the US and are appealing for urgent Philippine government intervention to retain the competitiveness of the country’s goods in the US market.
In separate position papers, the Philippine Exporters Foundation, Region III, Inc. (PHILEXPORT Region 3) and three major furniture organizations are calling on the administration to initiate diplomatic engagement, in particular seek “urgent high-level diplomatic discussions with US trade authorities to negotiate the reversal or reconsideration of the tariff policy.”
PHILEXPORT Region 3, representing exporters in Central Luzon, in an April 21, 2025 letter expressed “strong opposition” to the tariff imposition. It noted how the 17% tariff could erode the cost competitiveness of Filipino goods in the US and hit SMEs particularly hard as they have scant resources to absorb the added cost or quickly pivot to new markets.
The regional exporters also feared other adverse results, including loss of market share, earnings reduction, job losses, stifled growth and investment, and severe economic challenges to the region’s export-driven enterprises.
“We assert that this protectionist measure will inflict significant and detrimental consequences on our member companies, undermine the long-standing trade relationship between the Philippines and the United States, and ultimately prove disadvantageous to both Philippine and American economies,” they declared.
Meanwhile, furniture manufacturers—represented by the Chamber of Furniture Industries of the Philippines, Inc. (CFIP)-National, Pampanga Furniture Industries Foundation (PFIF), and Cebu Furniture Industries Foundation (CFIF)—said the tariff imposition could erode the Philippines’ price advantage in the US$1.8-billion furniture import market of the US.
Factory closures and job losses for some six million Filipinos in the supply chain are also possible consequences, they said in a May 5 position letter to the Department of Trade and Industry.
Moreover, the new US tariff policy threatens the industry’s 8% annual growth target and its 2030 roadmap to establish the Philippines as Asia’s design innovation hub and global leader in high-end furniture, the furniture stakeholders said.
Aside from diplomatic engagement, PHILEXPORT Region 3 sought government support in the form of financial assistance, tax relief and market diversification programs to “help affected exporters cushion the blow.”
It also suggested an ad hoc committee of relevant government agencies and industry leaders to craft impact-mitigating programs for affected exporters.
The export organization likewise pushed for new and strengthened trade agreements beyond the US “to reduce dependence on a single market and to ensure long-term sustainability of Philippine exports.”
On the part of furniture makers, they appealed for diplomatic engagement that will prioritize the retention of the 0% tariff for Philippine furniture in bilateral trade negotiations. They also want the Philippine government to highlight the industry’s commitment to shift from sourcing Asian hardwood materials to increasing US hardwood imports to 50% “as a gesture of reciprocal trade partnership.”
Like PHILEXPORT Region 3, the furniture industry also appealed for support measures including tax incentives and export credit guarantees, and pushed for the modernization of logistics and port facilities for the efficient importation of American hardwoods.
Additionally, CFIP, CFIF and PFIF underlined the need to expand TESDA-led workforce training and upskilling programs to enable workers to handle new materials and advanced processes. Upskilling, they added, could help protect about 45,000 livelihoods tied to artisan-based furniture production.
The Philippine furniture industry is an US$844 million market projected to reach $1.7 billion by 2033, they said. It currently sustains a notable 5.6 million direct and indirect jobs.
“U.S. exports surged 25% from $79.5 million (2023) to $99.7 million (2024), demonstrating resilience through premium craftsmanship and sustainable practices,” the furniture trade groups said.
They further assured that the robust Filipino furniture industry does not pose a competitive threat to American domestic furniture manufacturers as most of Philippine exports to the United States are not upholstered products, which constitute about half of the US furniture market.
“Instead, our exports primarily consist of items crafted from indigenous natural materials—such as rattan, abaca, and other fibers—that are not readily available in the United States.”