Ralph G. Recto, secretary of the Treasury Department (DOF), said the government has not received formal communications about potential new tariffs from the U.S. against digital tax countries.
“No communication was made with us,” Mr. Recto told reporters on the sidelines of the Senate Brie.fiNG Tuesday.
U.S. President Donald J. Trump released an article on Truth Social last month, warning of “extra tariffs” on countries that impose digital taxes.
Asked if he was weighing the possibility of tariff retaliation, Mr. Recto said: “So far, I’m not important.”
The Philippines will begin to implement the Republic Law No. 12023 of the Digital Tax Act this year. It imposes a 12% VAT on non-resident digital service providers such as NetfLix, Amazon and Google.
The measure aims to create a level performance fiBetween platforms, regardless of nationality.
On August 29, Vice Minister of Trade Allan B. Gepty said the Philippines requires the United States to exempt agriculture and other exports from reciprocal tariffs of 19%.
Mr. Recto reiterates that no fiAs negotiations between the two countries continue, the NAL agreement has been signed.
Ferdinand R. Marcos, Jr., met with Mr. Trump in Washington in July. After the meeting, the U.S. raised its reciprocal tariffs on the Philippines to 19% from the initial interest rate announced in early April of 17%. The 19% tariff will come into effect on August 7.
The Philippines has agreed to negotiations to acknowledge that certain U.S. products are not tariffs, including cars, wheat, soybeans and medicines. Tariff exemptions are expected to result in the government’s expected revenue of pesos between 3 billion and 6 billion.
Mr Recto remained optimistic after double-digit export growth in July, but added that it could be unsustainable as exporters may rush to deliver before new tariffs take effect.
Exports rose 17.3% in July to $7.34 billion, while imports slowed by 2.3% to $11.38 billion, according to the Philippine Bureau of Statistics.
“Siguro Sustainable Yun Kung Fu Hindi Rin Papatawan. Puro Pananakot. So the previous Hanggang Kailan? next year. Sana. (Export growth may be sustainable without higher tariffs. How long will I hope the preload last?). ” said Mr. Recto.
Mr. Trump also made a proposal to raise tariffs on semiconductors to 300% to encourage U.S. companies to produce chips at home. – Aubrey Rose A. Inosante
