MANILA, Philippines — The Philippine government remains hopeful about strengthening economic ties with the United States, even as it assesses the impact of Washington’s decision to impose a 20 percent tariff on all Philippine exports starting August 1.

Special Assistant to the President for Investment and Economic Affairs Frederick Go acknowledged concerns over the new tariff during a Palace press briefing on Thursday, but maintained that Manila is committed to engaging its top trading partner in “constructive and productive” talks.

“We are concerned that the US has decided to impose a 20 percent tariff on Philippine exports,” Go said, adding that despite the increase, the Philippines still received the second-lowest reciprocal tariff in the region—next only to Singapore’s 10 percent rate.

Go said the Philippines continues to value its strategic relationship with the United States and is working toward a more stable trade framework through a Bilateral Comprehensive Economic Agreement or a possible Free Trade Agreement (FTA).

He and his team, which includes Trade Secretary Ma. Cristina A. Roque and Undersecretaries Ceferino Rodolfo and Allan Gepty, will travel to Washington next week to begin the second stage of high-level trade negotiations.

While the 20 percent tariff covers a broad range of products, Go clarified that the country’s top exports to the U.S. may be shielded from the new duties.

“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, emphasizing the sector’s critical role in both countries’ supply chains and its exemption due to U.S. national security considerations.