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National Economic Development Authority Secretary Arsenio Balisacan during the Management Association of the Philippines Economic Briefing and Membership Meeting at the Bonifacio Hall of Shangri-La at The Fort, Taguig City on August 19, 2022. Jonathan Cellona, ABS-CBN News

Article (news)

Arsenio Balisacan

Jekki Pascual

ABS-CBN News

<div> </div>MANILA — The reported 100 percent tariff on chip exports to the United States will not have a major impact on the Philippine economy, according to the head of the Department of Economy, Planning, and Development (DEPDev).While semiconductors make up the largest share of the country&#x27;s exports, DEPDev Secretary Arsenio Balisacan said the impact of the US measure will not be as big as many fear it to be.“If they raise that to 100 percent, of course we’ll be affected. But insofar as the effects on the economy, I don’t expect that to be adverse because, for one the value added of semiconductors and electronics is actually not as high compared to the value-added of other exports,” he said.“In terms of its impact to the economy, it’s big in absolute amount. But in terms of the net amount that thing can bring to the Philippine economy is not that high.”Balisacan also noted that the Philippines also exports to other countries and not just the US. This is why he is also pushing for export diversification as well as market diversification. One good example, he said, is the strengthening of the Philippines’ trade relations with India following the visit of President Ferdinand Marcos, Jr. to New Delhi.“The big chunk, marami sa exports natin go to other countries, mga siguro 80-90 percent of that goes to countries like China,” he said.The DepDEV chief also added that instead of only looking at the US tariffs imposed on the Philippines, people should look at the overall global economy, which is also affected by tariffs. Based on a simulation exercise the government did, he said that even with the higher tariff on the Philippines by the US, the country still has a good advantage.US President Donald Trump has said that big chipmakers like Samsung and TSMC would be excluded from the tariffs as these firms have US-based plants.But while the highest-end semiconductor manufacturers will be excluded from the tariffs, producers of low-end chips would be affected, Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis, told AFP.  According to the Philippine Statistics Authority, electronics were the country’s top exports in June 2025 with total earnings of $3.89 billion or 55.4 percent of the country’s total exports during the period.  Electronic products were also the country’s top export in 2024 with total earnings of $39.09 billion or 53.4 percent of the country’s total exports during the period.- With a report from Agence France-Presse

While semiconductors make up the largest share of the country's exports, DEPDev Sec. Arsenio Balisacan said the impact of the US measure will not be as big as many fear it to be.

While semiconductors make up the largest share of the country's exports, DEPDev Sec. Arsenio Balisacan said the impact of the US measure will not be as big as many fear it to be.

Balisacan downplays economic impact of Trump's 100 percent tariff on chips

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Balisacan downplays economic impact of Trump's 100 percent tariff on chips

Jekki Pascual,

ABS-CBN News

Published Aug 07, 2025 04:35 PM PHT

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