"How buyers' support helps Philippines deal with tariff pressure", 27 October 2025

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Media reports citing the Foreign Buyers Association of the Philippines (FOBAP), mention that some longstanding international buyers have agreed to bear part—or even all—of the 19 per cent tariff imposed on Philippine garment exports to the US.

The development is welcomed as a positive move by the industry players and comes in the wake of a new bilateral trade agreement between the Philippines and the United States...

Under the terms, tariffs on goods exported from the US to the Philippines have been eliminated. However, exports from the Philippines to the US—including garments—remained subject to a 19 per cent tariff...

While the move faced backlash at home for not being able to achieve the desired tariff relief, industry insiders are focused on how buyers respond on the ground.

Robert Young, president of the FOBAP, reportedly noted that the willingness of the buyers to absorb the additional cost reflects the strength of the long-standing business relationships...

As per some estimates, ‘Made in Philippines’ apparel items are usually 10 per cent to 15 per cent more expensive than those from the regional competitors like Vietnam, Bangladesh, and Sri Lanka. The added tariff only widened this gap, posing a serious threat to the sector’s competitiveness.

Young emphasised that such voluntary commitments from the buyers are therefore critical for sustaining the export orders...