Faced with Trump’s tariff disappointment, urging diversified trade relations
go through Chloe Mari A. Hufana, reporter
One scholar said the Philippines should expand its trade relations with ASEAN, China and the EU to respond to the 20% tariff imposed by the U.S., regardless of the outcome of President Ferdinand R. Marcos.
Josue Raphael J. Cortez (Josue Raphael J.
The new tariffs are higher than the 17% interest rate originally allocated to the Philippines in early April.
“If ASEAN members cannot achieve the goal of lowering tariffs, strengthening trade relations with their neighbors will be the way to go,” he said through Messenger Chat. “It is time for the group members to strengthen transactions with each other because the transactions are stagnant, with the longest period of about 20-30%.
Philippine exporters are not expected to be competitive on a 20% tariff, and narrower differences relative to export competitors will also undermine the relocation of factories here.
Before the Washington meeting, Mr. Cortez said that if negotiations fail to cause tariff rollbacks, Manila must prepare a backup plan.
China remains the Philippines’ largest trading partner, with the United States ranked third, but the territorial dispute with Beijing complicates the prospect of deeper cooperation.
“It further deepens our economic ties to it, which may be our boon or bane,” Cortez said.
The South China Sea remains the root of friction with China, and the relationship between Beijing and Manila is at its worst in the face of frequent ship confrontations in the Philippines’ exclusive economic zones.
Tariff uncertainty highlights the urgency of bringing the ASEAN economy deeper into its integration projects.
“It’s time to strengthen each other’s deal again, especially if they can’t achieve their goal of lowering the tower.ffWith external partners,” Mr. Cortez said.
President Donald J. Trump imposed new tariffs on key members of the 10-country group, and Vietnam managed to reduce its ratio to 20% from 46% in April.
Mr. Cortez also pointed out that the EU is a potential alternative economic partner and negotiations with the United States should become sour. The EU is the Philippines’ fourth largest trading partner and the main source of foreign direct investment.
He added: “Given that we are politically and economically aligned with it, this will also be a great opportunity for us to further consolidate our relationship.”
According to Mr Cortez, successful negotiations with Washington this month will enhance Mr Marcos’ diplomatic status before speaking on his state of the country later this month.
“This will not only show his influence as the leading architect of Philippine foreign policy. It may also reflect his regime’s commitment to international norms and standards,” he said.
He noted that successful negotiations with Washington may indicate that Manila is a viable partner in the open market, willing to adjust and adapt to changing times.
“Despite the nuances of the point, some people think we are very dependent on Washington, but we are still a country that should be identified fiI will not hesitate to use all possible means of renegotiating something for ourselves. ” he added.
According to a Reuters report last week, Massachusetts Foreign Secretary. Theresa P. Lazaro ConfiRED held its first meeting between the two presidents.
Ms. Lazaro told Reuters that the new tariffs will be discussed with the Philippines delegation this week.
White House officials told Reuters earlier that the meeting was scheduled for July 22. Philippine officials have announced the date of Marcos visit from July 20 to 22.
The Philippines’ U.S. commodity trade deficit widened to $4.9 billion in 2024, an increase of 21.8% from 2023.
