EXPORTING PHILIPPINE PRODUCTS WITH LOWER PRICES AND LOWER TARIFFS TO THE UNITED STATES

EXPORTING PHILIPPINE PRODUCTS WITH LOWER PRICES AND LOWER TARIFFS TO THE UNITED STATES

While many countries around the world are facing the brunt of America’s protectionist policies, with some suffering tariffs exceeding 25% on their exports to the United States, the Philippines — surprisingly — seems to have gotten off a little easier. We will be hit with a 17% tariff on certain exports, after the temporary rate of 10%. It’s not a gift, but relatively speaking, we could call ourselves “lucky.”

No, I’m not saying we should be celebrating the imposition of tariffs. A 17% charge is still a burden, especially considering that some of our products used to enter the U.S. market duty-free or with minimal duties. But when compared to how hard other countries — especially China — have been hit, we must admit: the situation could have been worse. So rather than crying foul as mere bystanders caught in a global trade war, it’s time we stand up and ask ourselves what we can do to make the best out of this situation.

We live in a fiercely competitive global market. Every country is fighting for a bigger share of the export pie. So, let’s ask the tough questions:
What is our competitive advantage? What can we produce better, faster, or cheaper than our rivals?
What is our comparative advantage? Where do we hold the lowest opportunity cost compared to others?

These two concepts — competitive and comparative advantage — are the twin engines that drive successful export strategies. And when they intersect, that's where our true sweet spot lies. Fortunately, in many cases, Philippine exporters have already found that sweet spot. But now, with this new tariff landscape in the U.S., a fresh window of opportunity has opened.

Because American importers now face significantly higher costs when sourcing goods from other countries, they will be looking for cheaper alternatives. That alternative could very well be us.

Take electronics and semiconductors — the pride of our export economy. We’ve long been a key player in the global tech supply chain, and with relatively lower tariffs, we could take an even bigger slice of that pie.

Coconut-based products like virgin coconut oil and desiccated coconut are another strong suit. These are niche items where quality matters — and we have both the expertise and the natural resources.

Tropical fruits such as bananas, mangoes, and pineapples have long been favorites in the U.S. market. With consistent quality and lower costs, these can easily outshine pricier imports from Latin America or elsewhere.

And let’s not forget seafood — especially canned tuna and other high-value marine products. These are staples in the U.S. market where price and consistency are key.

I also have a strong hunch about coffee and cacao. Philippine-grown beans have rich potential, and if properly marketed, they could tap into the ever-expanding American demand for specialty and ethical coffees and chocolates.

One more sector we must seriously look at is garments and textiles. With the recent exposure of deceptive branding practices in other countries, particularly China, the door is now open for the Philippines to reintroduce itself as a trustworthy source of high-quality apparel.

To seize this opportunity, we need more than just ambition — we need a clear, cohesive export strategy. That’s why I propose the creation of a multi-agency Export Strategy Task Force, made up of the new DEPDEV (formerly NEDA), DTI, DFA, DA, DOST, FNRI, PHILEXPORT and other stakeholders. Their mandate? To identify, prioritize, and promote the product categories where the Philippines has both a comparative and competitive advantage in the U.S. market.

The situation isn’t ideal, but it’s workable — and maybe even advantageous, if we play our cards right. The world is shifting, and while trade wars may rage on, they also create new openings. Let us be bold enough to step into them. Lower prices, lower tariffs, and strategic focus could just be the winning formula to expand our export footprint in the world’s largest consumer market.

So, let’s not sit back and sulk. Let’s strategize, mobilize, and export more — and better. The future might just be in our hands.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres

iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

06-06-2025

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