A plan of the United States to impose a 100 percent tariff on semiconductors would be devastating for the country, the Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI) said on Thursday.
According to SEIPI President Dan Lachica, 70 percent of Philippine exports are semiconductors, of which 15 percent is US-bound.
In 2024 alone, total Philippine exports of semiconductors stood at $30 billion.
Lachica was reacting to reports which quoted US President Donald Trump on August 6 as saying that the US will impose a tariff of 100 percent on imported semiconductors.
According to a Reuters report, the tariff will not apply to companies that are manufacturing in the US or have committed to do so.
The move is part of Trump’s efforts to bring manufacturing industries back to the United States.
SEIPI in an earlier statement said the 19-percent country-specific tariff rate placed the Philippines as the second most competitive among its regional peers, next only to Singapore.
The group said the Philippines has unique strategic advantages and favorable trade policies, especially in contrast to Asean peers, and positions the country as an increasingly compelling destination for foreign direct investments (FDIs).
Equally significant is the US pledge of $15 million for the Luzon Economic Corridor initiative secured by Philippine negotiators during recent negotiations with their US counterpart.
