A Practical Guide for Growth Amid Global Shocks | Mount Fuji Lending
The rules of global trade are changing—and fast.
Starting August 2025, Philippine exports to the US now face a 19% tariff. Meanwhile, selected goods from the US are entering the Philippine market tariff-free.
These aren’t just government memos. They show up in costs, competition, and decisions about where your next peso goes.
If you’re running an SME, you need more than a lecture on tariffs. You need a plan.
Here are the big pressures business owners are feeling right now:
- Global uncertainty in the market
- Increased competition across neighboring countries
- Lack of clear policy direction
But here’s what’s also true: There are still strong signals on your side.
→Economic trends are still tilting in favor of Philippine businesses.
→Businesses that prepare—not panic—will move smarter and faster in the months ahead.
Let’s make sure you’re one of them.
The Trade Shifts You Need to Watch
- Philippine goods will become more expensive in the U.S.
- Cheaper U.S. products will enter the Philippine market.
- Competitive pressure from ASEAN neighbors is likely to increase.
- Local industries may need to adjust pricing to stay competitive.
Who gets hit the hardest
According to a UP CIDS study, about 30% of Philippine exports to the U.S. are now covered by the 19% tariff—with garments, tobacco, leather, and footwear taking the hardest hit.
Electronics were initially exempt, but Trump’s threat of a 100% tariff on chips and semiconductors could upend our top export industry. The Philippine government is already in negotiations to secure exemptions, but until deals are finalized, SMEs in these sectors must assess risks and prepare fallback strategies.
Who Competes With Cheaper U.S. Goods
Local industries competing against automobiles, soybeans, wheat, and certain pharmaceuticals will have to compete harder. When imports land cheaper, local businesses must sharpen strategy and pricing to thrive.
Who stands to gain
Some sectors may actually breathe easier. For import-dependent SMEs in retail, logistics, food, pharma, and consumer goods could see benefits from tariff-free access to U.S. products.
SMEs, here’s how to respond (without the panic)
When tariffs tighten margins and markets shift, clarity and control become your strongest assets. Here’s how to move forward with both.
- Secure your supply chain – Don’t shoulder rising costs alone. Work closely with brokers, suppliers, and logistics partners to map out where costs hit and renegotiate where you can.
- Stay on top of compliance – CFOs and finance teams need to actively monitor tariff updates closely. Full visibility is your best defense against costly mistakes.
- Diversify export markets – PH already exports heavily to APEC nations, and ASEAN trade agreements provide alternatives. Explore new markets before disruption forces your hand.
- Budget tariffs like raw materials – Treat tariffs as part of your fixed costs. Stop treating them as surprise charges. Plan for them the same way you plan for labor or utilities.
- Be smart with classification codes – Re-check the U.S. Harmonized Tariff Schedule to find better categories for your export goods. This small adjustment could buy valuable breathing room.
- Lean into the domestic market – Build resilience by tapping strong local demand. Adjust your targets, strengthen local supply chains, and gain more ground in domestic sales. This gives your business the base it needs to stay agile against global shocks.
- Treat mitigation as a team effort – Real solutions come from collaboration. Work with your finance, engineering, and operations teams. Your best defense is a clear, shared plan.
The snapshot: Every pressure point is a chance to level up.
Tariffs sting. They raise costs, tighten margins, and test resilience.
But this is also where strong businesses distinguish themselves. Tariffs force a sharper look at pricing strategy, trade lanes, and operational strength.
In uncertain times, the smartest move is to pause, assess, and make clear, data-backed decisions.
At Mount Fuji Lending, we’ve always believed lending is more than capital. It’s about timing, clarity, and strategy. We help businesses respond to change—decisively and with confidence.
Because trade shocks like this don’t wait. You either stay stuck or move smart.
Let’s talk.
