We have recently heard in the news that U.S. president Trump has implemented reciprocal tariffs to many countries including the Philippines. The reciprocal tariffs implemented by the U.S. can affect our export industry. Here is the reaction of the PCCI in regards to the recent action of the U.S. president:

For now, the 17% reciprocal tariffs on Philippine goods entering the US market is among the lowest vis-a-vis our ASEAN neighbors. This ensures that our competitiveness is preserved or improved unless adjustments are made in future.

The US has yet to announce the exact coverage but we remain vigilant as such tariffs typically target specific categories of goods such as food and agri products and electronics, which are our major exports.

We are wary at the potential impact the actions other countries may take in response to the US’ reciprocal tariffs. Retaliatory measures can disrupt global supply chains, increase costs, and create uncertainty for businesses and consumers, bringing about a broad negative effect on economic growth. And more so for a remittance and consumer-driven economy like ours. The ripple effect of having to absorb extra costs will be hardest on small businesses, particularly those in agriculture and food processing.

We note too, that our neighbors are already preparing to negotiate with the US to offer lower tariffs and better concession arrangements. We await our government’s action and watch our neighbors then act accordingly.