Copper, sugar exporters, energy equipment importers ready with strategic responses
Agriculture groups reminded the government to protect local producers and not rush a trade deal to reduce the 20 percent tariff set by the US on Philippine exports, to sustain the growth of the Philippine economy, particularly rural development.
The Samahang Industriya ng Agrikultura (SINAG) said in a statement over the weekend, the government should look into the broader implications for the domestic agricultural economy, before signing a deal with the US to reduce the 20 percent tariff on Philippine exports, set to take effect on August 1.
SINAG executive director Jayson Cainglet said the government must put local production, job creation, and rural development at the center of any trade response and trade agreements.
He stressed that the government should avoid a deal that will “prioritize the interests of importers and international traders at the expense of our local producers, manufacturers, and workers.”
“History has shown that trade agreements driven by market access alone undermines domestic industries, destroys our capacity to produce our own food, displace jobs, and weaken rural economies. The US tariff imposition should be viewed as a signal of how the US is protecting its own farmers, manufacturers, and domestic markets,” Cainglet said.
SINAG said that tariffs can serve as essential tools to support local agricultural production, promote industrial growth, protect jobs, and preserve rural livelihoods when used strategically.
“We reject any response that leads to a race to the bottom, slashing tariffs on key agricultural commodities, weakening labor protections, or compromising environmental standards. Trade policy must be shaped by the national interest, not by external pressure or short-term market gains of a few privileged importers,” Cainglet pointed out.
Meanwhile, the Sugar Regulatory Administration (SRA) said that sugar exports to the US may not be affected by the tariff changes until 2026.
“We need to sit and compute what the replenishment ratios will be… But we are not affected by the 20 percent this year. We will see what happens in 2026,” SRA Administrator Pablo Azcona said in a message to reporters over the weekend.
Earlier in 2025, the SRA issued an order allowing the voluntary exportation of 66,000 metric tons of raw sugar to the US.
The Philippine sugar export quota to the US is still deemed important as the Philippines is only among a few countries with annual export quotas to the US market.
The Mines and Geosciences Bureau (MGB), meanwhile, explained that the impact of the 50-percent tariff on copper exports to the US, will be modest, “given the relatively small share of Philippine copper exports to the US market.”
The MGB said that nevertheless, for the short-term, Philippine copper producers will likely explore alternative markets to offset potential losses in the US as this tariff may lead to copper price volatility, which could affect the revenue of local producers.
For the long-term, the agency said, the Chamber of Mines of the Philippines will focus on value-added activities, such as domestic refining and downstream investments, and adjust production strategies, to sustain and enhance competitiveness in the global market.
“Government remains committed to the sustainable development of copper resources, recognizing the metal’s crucial role in the global transition to clean energy. The MGB, in particular, will continue to monitor the situation and work with industry stakeholders to ensure the long-term viability and sustainability of the Philippine mining sector,” it added.
Alexander Ablaza, Philippine Energy Efficiency Alliance president, said that Philippine imports of energy efficiency equipment, components and software licenses from the US market will become less competitive.
However, Ablaza said that most equipment imports made by the local energy efficiency sector in recent years, including those of a few US brands, have been sourced directly from China, Japan, Europe and Asean-based suppliers.
“What the US tariff policy regime may result in, especially for US-sourced energy efficiency technologies, is the shift from self-financed purchases toward off-balance sheet procurement models, especially energy service company performance contracts, to be able to spread the US price increases across a longer investment horizon,” he added.
