The Philippines is concerned about the United States' decision to impose 20% tariffs on Philippine exports but will continue to negotiate, its economic affairs minister said on Thursday.

The new tariff rates threatened in the letters Trump shared Wednesday are similar to those he announced on what the White House dubbed “Liberation Day” in early April.

US President Donald Trump released a fresh set of letters to trading partners on Wednesday, setting out tariff rates for six countries as Washington pushes to bring about a flurry of trade deals officials have promised.

The Philippine economy is likely to be resilient to higher US levies but faces the risk of lower foreign investments amid the global uncertainty, according to S&P Global Ratings.

Semiconductors are the Philippines’ top export - a cornerstone of its services-driven economy. Former United States president Joe Biden's administration previously signaled plans to deepen preferential investment in the country’s semiconductor supply chains and workforce.

It shows that personal grudges rather than simple economics are a driving force in the U.S. leader’s use of tariffs.

The global tariffs announced by US President Donald Trump in April triggered “strong” investor interest in the Philippines, which was threatened with a lower levy than most neighbors, a top trade official said.

Countries like the Philippines and Singapore could benefit from tariff concessions if negotiations with the Trump administration progress favorably, according to Dutch financial giant ING Bank, which flagged the building pressure on Asian economies facing higher-than-expected post-Liberation Day tariffs.