THE local furniture industry is seeking a coordinated government action for protection against the impact of the proposed 17 percent tariff by the United States, which it said is the largest single-country market for Philippine furniture.
A joint position paper by industry groups said the tariff will make Philippine furniture less attractive to US buyers and will risk a decline in export revenues.
“Any reduction in exports to the US resulting from higher prices could lead to job losses and factory closures,” the Chamber of Furniture Industries of the Philippines, Cebu Furniture Industries Foundation and Pampanga Furniture Industries Foundation, Inc. said in a joint position paper dated April 21, 2025, a copy of which was obtained by the Malaya Business Insight.
The tariff, they said, could derail the industry’s 2030 roadmap, which aims to establish the Philippines as Asia’s design innovation hub.
“As the sector faces the imminent threat of a 17- percent US tariff on Chapter 94 furniture exports, urgent and coordinated government action is needed to protect this industry and the millions who depend on it,” the position paper added.
The groups appealed to the government to prioritize the retention of zero tariff for Philippine furniture in their negotiations on the tariffs in Washington.
They added that the government can push tariff exemptions for Philippine furniture by leveraging a reciprocal hardwood sourcing strategy.
While US hardwoods account for a small share of about 2 percent in the Philippines’ 2020 imports, the industry said it commits to increasing the use of certified American hardwoods by at least 15 percent.
“This shift supports both sustainability and product quality while strengthening trade ties with the US,” the groups said.
For domestic support, the furniture industry urged the government to provide tax incentives and export credit guarantees for manufacturers using certified US materials.
The groups also urged the government to modernize logistics and port facilities to facilitate the efficient importation of American hardwoods.
The industry has about 1.6 million direct and indirect employees and supports a total of 6 million Filipinos in the supply chain, according to the position paper.
These jobs span manufacturing, design, logistics, materials supply, and ancillary services, supporting families and local economies nationwide.
The furniture industry in 2024 was valued at $844 million and is projected to reach a value of $1.7 billion by 2033, based on its roadmap that targets an annual growth rate of 8.2 percent.
Data from the industry groups showed exports to the US surged 25 percent in 2024 to $99.7 million from $79.5 million in 2023.
In a May 7 interview, DTI Secretary Cristina Roque said in her meeting with leaders of furniture companies, she has urged the industry “to explore the local market, the strength of the local buying power.”
Roque said these companies, which participated at the High Point Furniture Market trade show in North Carolina in late April, “realized that we can still improve… sometimes we lag behind.”
In a social media post on the meeting also on May 7, Roque said she urged firms “to blend local strength with global reach —diversifying for resilience, and daring for visibility in an ever-competitive world stage.”
