MANILA, Philippines — The Federation of Free Farmers (FFF) has expressed concern over the potential impact of the United States’ upcoming 17 percent tariff on Philippine agricultural exports. The group urges the government to take proactive measures to mitigate any negative effects on the local agricultural sector.
The FFF has warned that even though the Philippines will face one of the lowest tariff rates among US trade partners, the tariff could still lead to higher costs for agricultural exports, affecting the competitiveness of Philippine products in the US market.
The Department of Agriculture (DA) is currently reviewing the effects of the tariff decision. Agriculture Secretary Francisco Tiu Laurel has downplayed the FFF’s concerns, stating that the analysis may be overstated, and that it is too early to assess the full impact.
The FFF has raised concerns that higher tariffs could reduce demand for Philippine agricultural exports, such as coconut products, especially coconut oil, which is heavily reliant on the US market. The group has also warned of a potential oversupply of agricultural products from other countries, which might result in lower prices and increased competition for Philippine producers.
The FFF has called on the government to intensify efforts to enhance domestic agricultural productivity and improve cost competitiveness in order to ensure long-term sustainability for the sector.
In contrast, the Samahang Industriya ng Agrikultura (SINAG) is monitoring the global market closely but has not yet determined the direct impact of the US tariffs on the Philippine agricultural sector. SINAG executive director Jayson Cainglet noted that tariffs are often used to protect domestic industries and encourage the development of local agriculture.
Meanwhile, House assistant majority leader Rep. Jude Acidre has expressed confidence that the Philippines may not be directly affected by the US tariffs, citing the significant presence of overseas Filipino workers (OFWs) and foreign investments in the country. Acidre emphasized the importance of economic resilience in navigating the situation.
According to data from the Philippine Statistics Authority (PSA), the Philippines posted a $1.95-billion agricultural trade deficit with the US in the previous year. The country exported $1.37 billion in agricultural goods to the US, while importing $3.32 billion. Approximately 18 percent of the Philippines’ total agricultural exports went to the US, with key exports including vegetable fats and oils, edible fruits and nuts, fish and fish products, and preparations of cereals.
The PSA also reported that the Philippines’ total agricultural trade expanded by nearly 12 percent year-on-year in 2024, reaching $27.22 billion. However, the country continues to face a long-standing agricultural trade deficit.
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