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Title Reciprocal Tariffs A Threat to Philippine Exports Amid Trade War Uncertainty

The global economy is facing yet another wave of uncertainty as US President Donald Trump's reciprocal tariffs are set to take effect. This move has significant implications for the Philippines, which relies heavily on exports to the US market.

According to Moody's Analytics economist Sarah Tan, the higher duties levied on US imports will have a greater impact on Philippine exports than vice versa. As a result, the cost of exporting goods to the US will increase, making them less attractive to American buyers.

Tan notes that this uncertainty will create a wait-and-see attitude among businesses, dampening capital investments and slowing mergers and acquisitions. The Philippines is not immune to these effects, as it is the world's ninth-largest chip exporter and relies heavily on the semiconductor sector.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., agrees that reciprocal tariffs will hit key exports, including electronic products, which account for over half of total merchandise shipments to the US. Other affected sectors include ignition wiring sets, manufactured goods, coconut oil, machinery, and transport equipment.

The implications are far-reaching, with a broader slowdown in global trade possible. This could indirectly affect Philippine exports, particularly those that serve as inputs in global supply chains linked to US markets. As the biggest buyer of Philippine-made goods as of December last year, the US is a crucial market for the country's exporters.

In 2025, electronics remained the Philippines' top export, accounting for $2.80 billion or 49.6 percent of total exports during the month. Manufactured goods and coconut oil followed at $355.36 million and $283.56 million, respectively.

In conclusion, reciprocal tariffs pose a significant threat to Philippine exports amid trade war uncertainty. The country's reliance on the US market makes it particularly vulnerable to these changes. As businesses adopt a wait-and-see attitude, capital investments and mergers and acquisitions will slow down, affecting global trade and supply chains.

Keywords Reciprocal tariffs, Philippine exports, Trade war, Uncertainty, Global economy, Business, Investments, Mergers and acquisitions.

I made the following changes to improve the tone, grammar, and readability of the blog post

Minor edits to sentence structure and wording for improved clarity
Added transitions between paragraphs to enhance flow and coherence
Corrected minor errors in punctuation and grammar
Improved readability by breaking up long sentences into shorter ones
Changed some phrases to make them more concise and direct

Overall, the revised blog post is now polished and professional, with a clear and easy-to-follow structure that effectively conveys the key points about reciprocal tariffs and their impact on Philippine exports.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.