Net inflows of foreign direct investments (FDI) into the Philippines rose to a three-month high in April, but the higher-than-expected tariff on Filipino goods bound for America is feared to disrupt the momentum.

The Philippines is concerned about the United States' decision to impose 20% tariffs on Philippine exports but will continue to negotiate, its economic affairs minister said on Thursday.

Explore our tariff tracker to see the latest rates for Brazil and seven other nations impacted by Trump's new trade policies.

The Philippine economy is likely to be resilient to higher US levies but faces the risk of lower foreign investments amid the global uncertainty, according to S&P Global Ratings.

Semiconductors are the Philippines’ top export - a cornerstone of its services-driven economy. Former United States president Joe Biden's administration previously signaled plans to deepen preferential investment in the country’s semiconductor supply chains and workforce.

It shows that personal grudges rather than simple economics are a driving force in the U.S. leader’s use of tariffs.

The global tariffs announced by US President Donald Trump in April triggered “strong” investor interest in the Philippines, which was threatened with a lower levy than most neighbors, a top trade official said.

In his notice letter, Trump informed Marcos that come August 1, 2025, Washington will charge Manila 20% on any of its products sent into the US.