Philippine senator urges action as U.S. tariffs threaten BPO jobs
MANILA, PHILIPPINES — Senator Sherwin Gatchalian is sounding the alarm over potential job losses in the Philippines’ crucial business process outsourcing (BPO) sector due to new United States tariffs.
The lawmaker has filed Senate Resolution 1343 demanding an immediate government assessment of how the 17% tariff hike could impact the country’s $12.12 billion export trade with its largest market.
Senator Gatchallian urges that Philippine workers be protected from the impacts of these tariff escalations.
BPO sector faces existential threat from tariffs
Senator Gatchalian has raised alarms over potential U.S. tariff hikes, warning that increased costs could push global companies to relocate their outsourcing operations from the Philippines to cheaper alternatives in ASEAN.
He noted the vulnerability of the OFWs as well as the country’s BPO industry, a major employer and key contributor to the economy, stressing that job losses could impact millions of Filipino families dependent on the sector.
“We must identify the potential impact, particularly on overseas Filipino workers and the business process outsourcing industry, as both are vulnerable to a global economic slowdown,” he said.
Urgent need for economic safeguards
Gatchalian is also pushing for proactive measures to protect the Philippines‘ position as the world’s BPO capital—another sector affected, despite the tariff headwinds.
His resolution calls for contingency plans, including potential tax incentives and upskilling programs, to maintain the country’s competitive edge in global outsourcing.
The warning comes as Philippine exports to the U.S. grew 4.7% to $12.12 billion in 2024. While some analysts believe the country remains better positioned than ASEAN peers, Gatchalian insists the government must act now to prevent collateral damage to workers in the outsourced services sector.
“Now is the time to understand what’s at stake—not just for trade figures but for the millions of Filipinos whose livelihoods are tied to how we respond,” Gatchalian noted.
As the tariff implementation looms, the Philippine government faces mounting pressure to shield its vital BPO industry from economic fallout. The sector’s stability remains crucial not just for export figures but for the millions of Filipino families dependent on its continued growth.
