The Philippines expressed strong concern Thursday after the U.S. announced across-the-board 20% tariffs on all Philippine exports effective August 1, with Presidential Adviser for Investment and Economic Affairs Secretary Frederick Go revealing the decision came as "a surprise" despite Manila's previously strong negotiating position.

Key Developments:

• Tariff Increase: Jump from 17% to 20% places Philippines as second-lowest among ASEAN nations (after Singapore's 10%)

• Diplomatic Response: Trade Secretary Christina Roque and deputies Perry Rodolfo/Allan Gepty to lead Washington talks next week

• Critical Exemption: Semiconductor/electronics exports (40% of PH shipments) remain tariff-free due to U.S. supply chain priorities

Negotiation Strategy:

Secretary Go emphasized in-person meetings would prove more effective than prior email exchanges, noting:

• Pre-existing Washington visit conveniently timed for urgent talks

• Philippines committed to good-faith negotiations for comprehensive bilateral deal

• Alternative: Pursue full free trade agreement negotiations

U.S. Position:

President Donald Trump framed the tariffs as part of reciprocal measures also targeting Brazil, Algeria, Iraq, Libya and Brunei, warning rates could rise further if Manila retaliates.

Economic Context:
The move impacts $12.3B in annual PH exports, though critical tech shipments remain protected under:
✓ CHIPS Act supply chain protections
✓ Defense production considerations