The United States raised its tariffs on Philippine exports to 20 percent, effective August 1, according to a letter by US President Donald Trump to President Ferdinand Marcos Jr on Wednesday.

Special Assistant to the President for Investment and Economic Affairs Frederick Go said on Thursday: ''We are concerned that the US has decided to impose a 20 percent tariff on Philippine exports.”

“The fact rejmains, however, that the 20 percent rate is the second lowest among all reciprocal tariffs that the US has imposed on the region, the lowest being the 10 percent of Singapore,” Go said.

Go and his team are scheduled to travel to Washington next week to begin the “second stage” of high-level negotiations.

Go will be joined by Department of Trade and Industry (DTI) Secretary Ma. Cristina Roque and Undersecretaries Ceferino Rodolfo and Allan Gepty.

While the 20 percent tariff will apply broadly, Go clarified that key Philippine exports to the US may be spared.

Notably, semiconductor exports, which are critical to both nations’ supply chains, have been exempted from the new tariffs due to their importance to US national security.

“Our number one export sa Amerika ay semiconductors and electronics. Ang good news po sa atin sa ngayon ay karamihan ng ating exports ng semiconductors ay hindi covered ng tariffs,” Go said.

According to the Philippine Statistics Authority, exports of semiconductors and electronics comprise 52.8 percent of total exports.

Go said the Philippines continues to value its strategic relationship with the United States, and is actively seeking a Bilateral Comprehensive Economic Agreement or a possible Free Trade Agreement (FTA) to create a more sustainable and equitable trade partnership. DMS