Philippines emerges as US ‘friendshoring’ hub, HSBC says

The Philippines is emerging as a key “friendshoring” destination for the US and a secondary hub for China-based companies, HSBC Global Research said. The country benefits from low reciprocal tariffs with the US and strong bilateral relations, positioning it well for supply chain diversification amid global trade tensions. The US recently imposed a 17% reciprocal tariff on Philippine exports, now paused for 90 days as negotiations continue. If lowered, exports—mainly semiconductors and electronics—could rise. HSBC highlighted the Philippines’ role in assembly, testing, and packaging of semiconductors but noted challenges like high electricity costs and skill shortages. Structural reforms aimed at improving the business environment and attracting investment are underway. The nation’s potential to boost tech exports and infrastructure development makes it a strategic contender in the shifting global supply chain landscape.