Furniture manufacturers raised concern over the planned 17 percent US tariff on Philippine exports, saying it could shutter factories and displace up to six million Filipino workers across the supply chain.
The Chamber of Furniture Industries of the Philippines (CFIP), the Pampanga Furniture Industries Foundation (PFIF), and the Cebu Furniture Industries Foundation (CFIF) said in a joint May 5 position paper the tariff threatens to erode the Philippines’ price advantage in the $1.8-billion US furniture market.
The measure, they said, also puts at risk the industry’s 8-percent annual growth target and its 2030 roadmap to become Asia’s design innovation hub and a global leader in high-end furniture.
The groups urged the Philippine government to act swiftly by engaging in high-level diplomatic talks with US trade officials to seek a reversal of the tariff.
They also called for support measures such as tax incentives, export credit guarantees and improved logistics and port infrastructure to facilitate the import of US hardwoods, an important input for local furniture makers.
They proposed that trade negotiations emphasize the sector’s move to increase its use of US hardwoods to 50 percent of total raw materials, a gesture of reciprocal partnership.
They also asked the government to expand TESDA-led training and upskilling programs to help workers adapt to new materials and processes, especially among the 45,000 artisans in handcrafted furniture.
The furniture industry, valued at $844 million, is projected to double by 2033 and currently supports 5.6 million direct and indirect jobs.
Exports to the US rose 25 percent in 2024 to nearly $100 million, driven by sustainable practices and premium craftsmanship.
Industry leaders said Philippine furniture does not directly compete with US-made products, as most exports are non-upholstered pieces made from indigenous materials like rattan and abaca—resources not readily available in the US.
Meanwhile, the Philippine Exporters Foundation (PhilExport) Region 3 also expressed worries over the tariff, warning of job losses, declining market share and weakened investment across Central Luzon’s export-driven economy.
PhilExport Region 3 proposed creating a government-industry task force to develop mitigation strategies, alongside expanded market access initiatives and strengthened trade agreements beyond the US to reduce overdependence on a single market.
“We assert that this protectionist measure will inflict significant and detrimental consequences on our member companies, undermine the long-standing trade relationship between the Philippines and the United States, and ultimately prove disadvantageous to both Philippine and American economies,” the group said in its position paper.
