FURNITURE makers who have raised alarm over the possible impact of the US reciprocal tariffs see as much as a 20 percent decline in their exports to America by next year, the Chamber of Furniture Industries of the Philippines’ executive director said on Wednesday.
In an interview with Malaya Business Insight, Ajun Valenzuela said furniture exports to the US, which account for half of the sector’s total, are projected to drop 13 to 15 percent this year and up to 20 percent in 2026.
The US has announced a 17-percent reciprocal tariff for its imports from the Philippines on April 2, but this was brought down to a baseline of 10 percent for 90 days. Prior to US President Donald Trump’s tariff policy, furniture exports from the Philippines to the US enjoyed a 2 to 3 percent duty.
In a separate interview in Taguig City late Tuesday, Rosemarie Rafael, president and chief executive officer of logistics firm Airspeed told reporters the company has noted a 10 percent slowdown in shipments, particularly of furniture and garments starting as early as March amid the speculation on tariffs.
Valenzuela confirmed this slowdown and said “yes, it is happening.”
When sought for comment, Ma. Teresita Agoncillo, executive director of the Confederation of Wearable Exporters of the Philippines, said: “Apparel buyers (importers) are assessing US President (Trump’s) announcement on tariffs so that they are delaying the arrival of goods into US ports.”
The furniture industry’s Valenzuela said some exporters are now absorbing the added cost of the higher tariff.
He said some US customers are adding surcharges to their pricing to cover tariff cost.
“Nobody knows what the outcome is going to be so plans are fluid, some of the existing US buyers are now asking for discounts from our manufacturers. If manufacturers give discounts, that is tantamount to shouldering the cost of the additional tariffs,” Valenzuela said.
Based on the furniture group’s data, exports to the US grew 25 percent in 2024 to $99.7 million from $79.5 million in 2023. Data from the Philippine Statistics Authority show furniture and fixtures recorded a 3 percent decline in export in 2024 to $279.69 million from $288.96 million in 2023.
According to Valenzuela, the US market’s purchases from the Philippines are mostly decorative indoor and outdoor furniture made from natural materials.
In the Tuesday interview, Rafael said some Airspeed customers are putting their shipments on hold, waiting for the stability of the tariff situation of the US.
“There’s not a lot of shipments going out, there are in fact some blank sailings… since some cargoes have to pass through transit points,” Rafael said, adding blank sailings happen when a ship either cancels or skips a port, often resorted to by carriers to cut costs.
However, Rafael expressed confidence exporters can overcome these challenges by looking at other markets. “Logistics will be there to serve them,” she said.
“It’s wait and see. It’s going to be slow, but there’s always a comeback,” she said, adding that domestic movements remain strong at a single-digit growth rate.
“Domestic consumption is still good,” she added.
Exports account for 30 percent of Airspeed’s business, Rafael said.
