Phl moves to avert US chip tariff shock

The Philippine government is pressing the Trump administration to spare its semiconductor industry from a planned 100% US tariff on imported chips, calling the move a potential blow to a sector that powers much of the country’s exports.

Philippine Ambassador to Washington Jose Manuel Romualdez described the White House plan as “very disturbing” during the US-ASEAN Business Council meeting in Pasay City.

He said Manila is working closely with the semiconductor sector, the US Chamber of Commerce, and the Semiconductor Industry Association to find ways to avoid the tariff.

Romualdez warned that the measure could derail major investments such as Texas Instruments’ billion-dollar project in the country, now “in limbo” pending resolution of the issue.

In the US, chipmakers themselves are lobbying to scrap the tariff, which Romualdez said would deal a “very substantial” shock to the Philippine semiconductor industry.

The envoy also noted ongoing talks to lower the 19% reciprocal tariff on Philippine goods, with the US showing openness to reductions once trade balances improve.

Foreign Affairs Secretary Ma. Theresa Lazaro said the tariff row is also pushing ASEAN nations to boost intra-regional trade, with discussions on expansion already underway.

Romualdez further urged the US to ramp up investments in the Philippines, stressing that every dollar spent here “strengthens America’s position in the Indo-Pacific.”