US tariffs hit Philippine furniture sector, makers call for government backing

CFC Admin

Sep 04

Philippine furniture makers are appealing for government support after the United States slapped a 17% tariff on local products—raising fears of factory shutdowns and major job losses.

In a letter to the Department of Trade and Industry, the Chamber of Furniture Industries of the Philippines (CFIP), Cebu Furniture Industries Foundation (CFIF), and Pampanga Furniture Industries Foundation (PFIF) said the new duties make Philippine goods less attractive to US buyers. They warned this could disrupt operations across the supply chain, threatening the jobs of up to six million Filipinos.

The groups also noted that the tariffs could derail the industry’s 2030 roadmap, which aims to position the Philippines as Asia’s design hub and a leader in high-end furniture.

Exporters from Central Luzon, represented by Philexport Region 3, echoed the concern, stressing that small- and medium-sized enterprises (SMEs) would be hardest hit. They urged the government to push for talks with Washington to reverse—or at least reduce—the tariff.

As a possible trade-off, industry leaders suggested that the Philippines increase imports of American hardwood to show goodwill. They also reminded US officials that Philippine exports are mostly made from natural materials like rattan and abaca, which don’t compete directly with American furniture.

Beyond tariff talks, the sector is also asking for domestic support in the form of tax incentives, export credit guarantees, and improved logistics facilities to soften the blow.

The Philippine furniture market is currently worth about $844 million and was on track to double by 2033. But with new trade barriers in place, its 8% annual growth target is now at risk.

Still, there was some good news last year: exports to the US rose 25%, reaching nearly $100 million.

Source: Local furniture makers seek government help amid US tariff blow - Dexter Barro II, Manila Bulletin