The Philippines reacted with “guarded optimism” Thursday to U.S. President Donald Trump’s sweeping tariffs, saying increased charges positioned on its neighbours might current a possibility.
The longtime U.S. ally was hit with a reciprocal levy of 17%, although Manila’s Division of Commerce and Trade (DTI) famous the nation ranked amongst “the least hit”.
“As we have expected, the Philippines is among the least hit among key exporters to the U.S.,” it stated, noting considerably increased tariffs positioned on Vietnam (46%), Thailand (36%) and Taiwan (32%).
“The new tariffs also put the Philippines in a more advantageous position… specifically for certain export products,” stated commerce secretary Cristina Roque, citing coconuts as a risk.
“The task at hand right now for DTI and other government agencies is how to act fast and take advantage of this new development,” she stated.
Whereas the proportion of Philippine GDP derived from exports is considerably decrease than its neighbours, Roque stated the US remained a “crucial export market”.
U.S. Embassy information reveals Washington’s commerce items deficit with Manila stood at $4.9 billion in 2024, up 21.8% on-year.
However whereas Manila noticed the optimistic facet, it additionally signalled a readiness to have interaction in talks.
The Philippines was ready to debate “enhanced market access” for key U.S. “export interests, such as automobiles, dairy products, frozen meat, and soybeans”, Roque stated.
She has already reached out to her U.S. counterpart to arrange talks, her assertion stated.
Whereas barely greater than half of the roughly 17% U.S. share of Philippine exports is represented by digital parts, specifics about targets have been skinny.
“As of now, we still don’t have the details on the industries that will be affected,” presidential palace spokeswoman Claire Castro advised reporters.
However Victor Abola, senior economist at Manila’s College of Asia and the Pacific, advised AFP he anticipated semiconductor exports and “probably a bit of wiring harness” gross sales to be impacted.
Many digital parts, nevertheless, have been already going to Japan and China, the Philippines’ two different prime markets, he stated.
And even when digital components have been focused, the Philippines might nonetheless come out forward given the upper duties positioned on regional opponents, Abola stated.
That disparity might even see factories lured to the nation, he added, whereas cautioning that would take time.
George Barcelon, chairman of the Philippine Chamber of Commerce and Trade, additionally stated he most popular to take a look at the tariffs “from the positive side” owing to the actual fact different nations confronted increased levies.
Whereas admitting US consistency on the problem might be trigger for concern, Barcelon advised pushback at dwelling might ultimately see Trump revisit the problem.
“Sometimes, you know, imposing these kinds of tariffs may have a downside for the U.S. consumer, so (Trump) might react later on and change it,” he stated.
This story was initially featured on Fortune.com
