The U.S. Supreme Court on Feb. 20, 2026, invalidated former President Donald Trump’s “reciprocal” tariffs in a 6-3 ruling, delivering immediate relief to Philippine exporters who faced an average 19% duty throughout 2025. Philexport President Sergio Ortiz-Luis Jr. hailed the decision as vital legal relief for the group’s members.

“Our exporters showed resilience last year, driving total exports to a record $84.4 billion despite these headwinds,” Ortiz-Luis said in a statement. “This ruling removes a major barrier that was unfairly penalizing Philippine craftsmanship and industry.”

Philippine exports held strong amid the pressure. Semiconductors and electronics led the way, generating $47 billion in 2025. Those sectors, critical to the U.S. technology supply chain, should keep their exemptions under the new policy, according to Philexport.

Agricultural shipments also dodged the worst. More than $1 billion in exports—including coconut oil, pineapples and mangoes—remain protected by specific carve-outs.

Caution persists, however. The U.S. administration quickly announced a replacement: a 10% global tariff under Section 122 of the Trade Act of 1974. That measure kicks in Feb. 24, 2026.

Ortiz-Luis called the new tariff an added cost but noted its worldwide scope. “While this is an additional cost, its global application means the Philippines maintains its relative competitiveness against other trading nations,” he said.

Philexport views the timing as an opportunity. Section 122 limits tariffs to 150 days without congressional approval. The group described this as a key window for negotiations to protect market access.

“Sustained bilateral engagement” tops Philexport’s priorities, officials said. They stressed the need for dialogue to counter shifting global trade rules and keep export growth on track.

The court’s action stemmed from challenges to tariffs imposed via the International Emergency Economic Powers Act, or IEEPA. Trump had used the law for broad duties on imports deemed unfair. Justices ruled it exceeded presidential authority.

Philippine exporters now pivot to the new reality. The 10% rate applies across the board, but exemptions for tech and agriculture blunt the blow. Still, Philexport warned that prolonged uncertainty could erode gains from last year’s record performance.

Ortiz-Luis emphasized resilience. Philippine goods proved their worth even under 19% tariffs. With the lower rate and negotiation prospects, leaders hope to build on that momentum.