Mitigating Impact US Tariffs' Effects on Philippine Exports Downplayed

Mitigating Impact US Tariffs' Effects on Philippine Exports Downplayed

The potential impact of US tariffs on Philippine exports has been downplayed by the Philippine Exporters Confederation Inc. (Philexport), which believes that the United States will continue to buy goods from both the Philippines and China, despite a 10% tariff imposed on Chinese imports.

In a statement, Philexport President Sergio Ortiz-Luis Jr. noted that Chinese prices are already low, making it unlikely for US tariffs to significantly affect demand. Chinese prices are so low. Even adding the 10 percent will not stop the US from buying from China, he said.

Ortiz-Luis also expressed hope that Washington's protectionist stance would mitigate its impact on trade geopolitics, noting that the Philippines had historically lost out to its neighbors and China due to unfavorable market conditions.

The Trade department has taken a more optimistic view, suggesting that the Philippines could benefit from US President Donald Trump's protectionism. During his first term, Trump welcomed the Philippines' interest in a bilateral trade deal, and the country is now exploring opportunities for a new generation of trade agreements that prioritize labor rights, environmental protection, and social inclusivity.

According to Trade Secretary Cristina Roque, the proposed United States-Philippines Partnership Act, introduced by US Secretary of State Marco Rubio last year, could lay the groundwork for deeper economic cooperation, particularly in critical minerals and infrastructure development.

Trump's recent announcement of duties on imports from Canada and Mexico, as well as China, has roiled global markets. However, the impact on Philippine exports remains uncertain, pending Trump's decision to push through with his campaign promise to raise duties on all goods bought overseas.

Conclusion
In conclusion, Philexport believes that US tariffs will have a minimal impact on Philippine exports, and the Trade department sees opportunities for cooperation with the US. While the global trade landscape is volatile, it remains to be seen whether Trump's protectionist stance will ultimately benefit or hinder 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.