THE Philippines’ semiconductor manufacturing sector would be at risk of facing a “devastating” impact should US President Donald Trump proceed with his plan to slap a 100% tariff on semiconductors entering the United States.
“[The] 100% tariff would be devastating,” Semiconductor and Electronics Industries in the Philippines. Inc. (SEIPI) president Dan Lachica told GMA News Online.
SEIPI was sought to comment on Trump’s announcement that he will impose a 100% tariff on imports of semiconductors, but will exempt companies that are manufacturing in the US or have committed to doing so.
“Seventy percent of Philippine exports are semiconductors. It was $30 billion last year, about $6 billion [was] exported to the US,” Lachica said.
Asked if the “worst-case-scenario” would be that semiconductor exporters would pull out of the country in response to Trump’s new trade policy, he said, “eventually possible.”
Data from the Philippine Statistics Authority (PSA) showed the US was the country’s top export destination in 2024, accounting for 16.6% or $12.14 billion of the total export receipts of $73.27 billion.
Meanwhile, electronic products were the Philippines’ top export, accounting for 53.4% or $39.09 billion of the total. Of this amount, the share of semiconductors to the total was 39.8% or $29.17 billion.
Special Assistant to the President for Investment and Economic Affairs (SAPIEA) of the Philippines Frederick Go earlier said that electronics and semiconductors are not covered by Trump’s reciprocal tariff directive.
GMA News Online reached out to SAPIEA Go’s office as well as Trade Secretary Cristina Roque for comment on the recent development, but no response has been received as of posting.
Trump’s reciprocal tariff policy was intended to target countries that have significant trade imbalances with America.
Data from the US Trade Representative showed America’s goods trade with the Philippines totaled an estimated $23.5 billion in 2024.
Broken down, the US goods exports to Manila stood at $9.3 billion, while its imports amounted to $14.2 billion, resulting in a goods trade deficit with the Philippines of $4.9 billion in 2024, up 21.8% year-on-year. (GMA Integrated News)
