Philippines-US semiconductor tariff talks ongoing

The Philippines and the United States are still in discussions regarding a likely 100-percent tariff on semiconductors, Trade Secretary Cristina Roque.

“The talks are still ongoing so there’s really nothing final,” Roque said at the sidelines of a business conference.

“Those tariffs are the things that were given to us, so our response to that is really to just continue the negotiations,” she added.

Roque said the Philippine officials led by Trade Undersecretary Allan Gepty had expressed the country’s bid for exemption from the chip tariffs.

“There’s already communication between us on the lower level and the US. The group of Undersecretary Alan Gepty and their counterparts are the ones talking about it,” she said.

Trump earlier this month said that the United States was planning to impose a tariff of about 100 percent on imports of semiconductors, with companies manufacturing in the US or committed to doing so to be exempted.

The Semiconductor and Electronics Industries in the Philippines Foundation Inc. has said the levy would be “devastating” for local chipmakers.

PCCI Executive Vice President Ferdinand Ferrer said the industry was waiting for the results of negotiations, but also said that exporters were also looking for other markets.

“We’re working hard to make sure that the Philippines is in a more favorable position,” he said.

“We are a friendly nation to the United States when it comes to electronics and semiconductors. We are part of their supply chain, a critical part of their supply chain. So that is our position.

Ferrer, who is chairman and CEO of the EMS Group, an electronic and semiconductor subcontractor, said the industry was “on our toes looking and providing information, possible feedback to our government.”

Filipino exporters, he also said, have been consistently looking for other markets even before Trump’s tariff threat. Manila Times