US Grants Tariff Exemption on Majority of Philippine Agricultural Exports in 2024

The United States has extended zero-tariff access to the majority of Philippine agricultural exports, marking a significant boost for the country’s trade in 2024. This exemption, announced following an executive order signed by former President Donald Trump, applies to goods valued at more than $1 billion.

Secretary Frederick Go, Special Assistant to the President for Investment and Economic Affairs, clarified that the tariff relief targets agricultural items "not grown or produced" domestically in the US, removing the previously imposed reciprocal tariff. He hailed the development as "good news... good for the country, it’s good for the farmers."

The tariff waiver covers a variety of Filipino agricultural products, allowing them duty-free entry into the US market. Notable commodities benefiting from the exemption include coconut copra oil, coconut water, desiccated coconut, fruit juices, processed pineapples, confectionery products, fresh and processed bananas, tuna fillets, and dried fruits.

Trade Secretary Cristina Roque emphasized the importance of this exemption in supporting the agriculture sector. "The exemption helps protect livelihoods, preserve jobs across our agricultural value chain, and creates opportunities for communities that rely heavily on exports," Roque stated. She further noted that the tariff relief is expected to increase demand and stabilize prices for the affected products.

Under the new order, 46 percent of the Philippines' total exports to the US are now free from the reciprocal tariff. The semiconductor industry had earlier secured a similar exemption. However, other exports outside these categories remain subject to a 19 percent tariff.

Officials confirmed ongoing efforts to expand tariff exemptions to additional products, particularly focusing on enhancing competitiveness in the country’s largest agricultural export to the US—the coconut sector.

While acknowledging that a free trade agreement (FTA) with the United States is not forthcoming in the near term, Philippine trade authorities are actively negotiating FTAs with other key partners such as the European Union, Canada, and the United Arab Emirates.