DA bullish on agri exports after US tariff exemption
The Department of Agriculture (DA) is looking to expand agricultural production and exports following an order from the United States government to exempt certain agricultural items from the 19-percent reciprocal tariff it imposes on Philippine goods.
“We have to start planting more so that we can export more to the US,” Agriculture Secretary Francisco Tiu Laurel Jr. told reporters on Wednesday. “Besides produce, produce, produce more, next year will be export, export, export more.”
Under a new executive order from Washington, agricultural products that the US cannot produce in large quantities will no longer face reciprocal tariffs.
These include coconut, beef, fruit juices, processed pineapples, desiccated coconuts, cocoa, bananas and more than 200 other agricultural items that accounted for more than $1 billion of Philippine exports to the US in 2024.
Tiu Laurel said the tariff relief brings stability to an unpredictable market.
“I’m happy that the anxiety of our industries, especially for fruits, even bananas, pineapples and coconuts, has calmed down, and people are happy. It’s basically an anxiety issue. Investments in the industries stopped because you didn’t know what lies ahead. But now, everything is clear,” he added.
Under the new US order, nearly half of the country’s exports to the United States will become tariff-free, according to Board of Investments Undersecretary Ceferino Rodolfo, who cited data from the United Nations Commodity Trade Statistics.
This is equivalent to $6.8 billion worth of Philippine exports—including electronics—that will now be tariff-free.
In 2024, the country’s total exports to the US totaled $14.5 billion.
Not just for PH
But in a statement on Wednesday, the Samahang Industriya ng Agrikultura (Sinag) emphasized that the latest tariff exemption applied to all US trade partners, not just the Philippines.
What should be prioritized, it said, is securing a lower headline tariff, which some countries had already achieved.
“What we are still awaiting from our trade negotiators is a meaningful progress toward reducing the 19-percent reciprocal tariff, a benchmark that many other countries have already achieved,” Sinag executive director Jayson Cainglet said.
“We also seek clarification on whether there is a formal commitment that a zero-percent tariff on US imports will not be adopted, despite long-standing lobby from US meat and soya exporters,” he added.
Newly appointed Finance Secretary Frederick Go earlier said the exemption does not mark the end of the country’s tariff negotiations with the United States. He said the government is also eyeing to push for tariff-free exports of garments, travel accessories, furniture and leather goods.
