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Palace rebuffs US tariff proposal and defends labor laws

Brushing off the threat of an impending tariff blow, Malacañang stated yesterday that the Philippines does not condone forced labor. Allegations were made by the United States Trade Representative regarding a supposed failure to address the problem, which was seen to result to unfair competition.

Palace rebuffs US tariff proposal and defends labor laws
Author
James Ramos
Published
Jun 8, 2026

Earlier this month, the representative said that the acts, policies and practices of sixty economies, including the Philippines, are unreasonable and restrict commerce. The issue is anchored on the alleged failure to impose and effectively enforce a ban on the importation of goods produced with forced labor.

To cope up with international standards, Press Officer Claire Castro asserted that the Philippines condemns the illegal practice. The official added that the country has existing laws and processes designed to combat the issue.

If the recommendations are enforced, an additional 10pct duty would be imposed by the office for economies that mandate a forced labor import prohibition, or have committed to enforce a prohibition through an agreement on reciprocal trade, or have enacted a partial regime. For all other economies, a 12.5pct additional duty is proposed.

"The government takes this issue seriously," Castro said at a press briefing. She highlighted the longstanding stance of the administration against forced labor, as well as the local laws against it.

Unless the sweeping trade disputes are clarified, a thorough review of the informations in the report is currently being conducted by the state. Castro announced that the government would communicate with American officials, i.e., through the proper channels, to definitively address the proposed tariffs.

As the government enforces its 2026 fiscal contribution mandates, this comprehensive guide clarifies the updated premium rates and statutory obligations for SSS, PhilHealth, and Pag-IBIG to ensure employers and employees remain fully compliant while securing their long-term social benefits.