The Philippine furniture industry is facing a serious setback as a 17-percent tariff imposed by the United States threatens to derail its 2030 goal of becoming Asia's premier design innovation hub. Industry groups, including the Chamber of Furniture Industries of the Philippines (CFIP), Pampanga Furniture Industries Foundation (PFIF), and Cebu Furniture Industries Foundation (CFIF), have submitted a position paper urging the government to negotiate tariff exemptions in ongoing trade talks with the US.
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The groups propose a reciprocal trade approach, pledging to shift hardwood sourcing from Asia to the US to enhance quality and sustainability. They aim to increase US hardwood imports by 50 percent, aligning with global certification standards. Currently, 75 percent of the industry's wood materials are imported, mostly from Asia, with US hardwoods making up only about 2 percent as of 2020.
To support the transition, the industry plans to expand Technical Education and Skills Development Authority (TESDA)-led programmes focused on US hardwood processing and sustainable circular design. This move also seeks to protect 45,000 artisan-based jobs, with the industry overall supporting 5.6 million jobs.
The groups stress that retaining zero-percent tariffs is "pivotal" for reaching their 2030 vision, potentially unlocking a $300-million export opportunity. They also argue that Philippine furniture poses no threat to US manufacturers, as it consists mainly of non-upholstered items made from indigenous materials such as rattan and abaca—products not readily available or reproduced in the US.
In 2024, the sector was valued at $844 million, with exports to the US rising 25 percent from $79.5 million in 2023 to $99.7 million. Presidential adviser Frederick D. Go confirmed that the concerns of furniture exporters were raised in recent negotiations with the US Trade Representative in Washington, D.C.
Source: www.businessmirror.com.ph