On November 18, Philippine officials announced that more than US$1 billion worth of the country’s agricultural products will no longer be subject to the United States’ reciprocal tariffs, following President Donald Trump’s decision to remove duties on various goods to ease the cost-of-living burden on Americans.

According to a statement from the Philippine government, products such as bananas, coconuts, mangoes, dried guavas, coffee, tea, spices, and certain types of fertilizers will be exempted from the 19% levy when entering the U.S. market.

Speaking at a press briefing the same day, Trade Undersecretary Ceferino Rodolfo said these agricultural products generated over US$1 billion in export value in 2024. This tariff relief adds to the previously announced package worth about US$5.8 billion for industrial products, including semiconductors.

Rodolfo noted that, in total, nearly half of the Philippines’ US$14.5 billion in exports to the United States will now be exempt from the reciprocal tariffs imposed under President Trump’s trade agenda, which aims to rebalance America’s trade relations with other economies.

Before the exemption, the Philippines, having a trade surplus with the U.S. was subject to a 17% tariff on most of its exports. Following negotiations in Washington, the rate was increased by an additional two percentage points in July, aligning with the tariff levels applied to other Southeast Asian countries.

Frederick Go, Special Assistant to the President for Investment and Economic Affairs and the newly appointed Finance Secretary, said the newly exempted agricultural products are “extremely important to Filipino farmers and rural economies,” describing the changes as a “win for Philippine agriculture and the country’s export community.” He stressed that “the removal of the 19% tariff will enhance the competitiveness of Philippine agricultural exports, create jobs, and strengthen supply chains.”

According to Secretary Go, tariff rates on other products such as garments, textiles, and furniture remain on the government’s “wish list” of items under negotiation.

This round of tariff relief follows President Trump’s November 14 executive order rolling back reciprocal duties on select agricultural imports. The measure applies to countries that supply significant quantities of agricultural products that the U.S. cannot produce sufficiently domestically, including coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, and beef.

The White House said the decision was based on “substantial progress in reciprocal trade negotiations” as well as current U.S. market demand for certain imported goods and domestic production capacity.

Prices for many of these commodities have risen sharply. According to the U.S. Bureau of Labor Statistics, coffee prices increased 18.9% between September 2024 and September 2025, while beef, bananas, and oranges rose 14.7%, 6.9%, and 3%, respectively.

The Food Industry Association of the United States welcomed the tariff rollback, saying it would benefit both consumers and manufacturers.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade