Imee sounds alarm over US tariff threats to PH semiconductor industry

Imee sounds alarm over US tariff threats to PH semiconductor industry

Senator Imee R. Marcos has issued a firm warning on the risks of the 100% tariffs imposed by the United States to the Philippines' semiconductor industry which is valued at USD?4.5-6?billion in annual U.S.-bound exports.

"We cannot underestimate the devastating impact these recent U.S. trade decisions may have on our semiconductor exports," said Senator Marcos. "It's disheartening to learn that our century long diplomatic relations not just as a strategic ally, but also as a trusted and reliable trade partner to the U.S. have only resulted to this. Regardless, the Philippines must not remain a passive observer. We need a plan -- not just false hope."

While companies with U.S. investments remain exempt from tariffs, local manufacturers engaged in chip packaging, testing, and assembly are left exposed to impending ruin. Even the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) warned of major job losses and declining competitiveness if a full 100% tariff is applied without a robust national response.

To protect the semiconductor industry, Marcos laid out several solutions. These include pushing for targeted U.S. exemptions; making contingency contracts with each customer; and quickly diversifying orders and markets as a matter of national policy.

"The U.S. is not the only market in the world. The Department of Trade and Industry (DTI) and the Department of Foreign Affairs (DFA) must act urgently to develop markets aside from the United States" said Marcos.

The senator also proposed setting up "U.S.-linked production lanes" to keep American buyers; moving up the value chain to products that are less sensitive to price changes; and co-investing in capabilities that the U.S. is more likely to support.

"If we keep relying on patience and pleading, our industry will collapse before any solution arrives. We must act now -- seek new markets, enforce our own policies, and protect our workers. We cannot just stand by while one of our country's biggest sources of livelihood is being pulled apart. Saving the semiconductor industry is also saving the future of the Philippine economy," Marcos added.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.