US Tariffs on Imports from Philippines

The Philippines saw its tariff rate drop from 17% (IEEPA) to 10% under Section 122 following the Feb 20, 2026 SCOTUS ruling — a 7-point reduction that levels the playing field across ASEAN. US imports from the Philippines total approximately $14B annually, with semiconductors and electronics as the dominant category.

The US-Philippines trade relationship is underpinned by a strong security alliance and historical ties. There is no bilateral FTA. The Philippines benefits from GSP preferences on eligible products. The electronics sector, particularly semiconductor assembly and testing, drives the trade flow, with major US firms operating facilities in the Philippines. The BPO (business process outsourcing) sector is significant but services-based and not subject to goods tariffs.

Key Products Imported from Philippines

Top imports include semiconductors and electronic components, electrical equipment, machinery, coconut oil, processed fruits (bananas, pineapple), wiring harnesses, and nickel. The Philippines is one of the world's largest exporters of coconut oil and a significant semiconductor assembly hub.

Recent Changes

Feb 20, 2026: SCOTUS struck down IEEPA tariffs 6-3 — the Philippines' rate dropped from 17% to 10% Section 122 (effective Feb 24, expires ~July 24, 2026). A 7-point reduction that, importantly, eliminates the tariff gap between the Philippines and other ASEAN nations (all now at 10%). Section 232 steel and aluminum tariffs of 50% remain unchanged. GSP eligibility reviews are ongoing and could provide additional MFN duty relief on qualifying products. Semiconductor assembly operations continue expanding.

Tips for Importers

Semiconductors and most electronic components enter at 0% MFN duty, so the 10% Section 122 tariff is the only layer — down from 17%. The Philippines now competes on equal tariff footing with all ASEAN nations at 10%, so its advantages in English-speaking workforce, US security alliance, and GSP eligibility become stronger differentiators. Check GSP eligibility for coconut oil, processed fruits, and wiring harnesses to potentially reduce or eliminate MFN duties on top of the Section 122 tariff. Plan for the ~July 2026 Section 122 expiry — if GSP is renewed and Section 122 lapses, many Philippine goods could face minimal total tariff burdens. The BPO sector is services-based and unaffected by goods tariffs.