Presidential Palace Thursday, the alarm The United States decides to increase tariffs on Philippine exports to 20% as high-level delegation prepares Fly to Washington next week Adjustment.
The Philippine Export Federation also expressed concern about the country’s trade leverage with the United States after U.S. President Donald J. Trump issued tariffs on 17% of hiking tariffs on “Liberation Day”.
“We are worried that despite our efforts and constant interactions, the United States has decided to impose a 20% tariff on Philippine exports,” the trade department said in another statement.
Nevertheless, Frederick D., the President’s Special Assistant for Investment and Economic Affairs.
Mr. Trump first announced a comprehensive tariff change on April 2 (called “Liberation Day”) and implemented a 90-day pause that ended on July 9.
The U.S. president said on his truth social media platform that starting from August 1, he will impose a 20% tariff on Phillipine goods, 30% of goods from Sri Lanka, Algeria, Iraq and Libya, and 25% tariffs on Breye and Moldova.
Mr Go said the Philippine government is in progressing further negotiations.
“We remain committed to continuing negotiations with the United States to comply with the comprehensive bilateral economic agreement, or where possible, or a free trade agreement.” Tell the press conference.
Delegation – consisted of the Minister of Commerce Mr. Go. Deputy Minister of Trade Ceferino S. Rodolfo and Deputy Minister of Trade Allan B. Gepty’s Cristina A. Roque is scheduled to visit Washington from July 14 to 18.
“The Economic Team and the Ministry of Trade and Industry will continue to advance major economic reforms to maintain a competitive and investor-friendly business environment,” Mr Go said.
Ambassador of the Philippines to the United States Jose Manuel “Babe” Romadez said the Philippines will seek to lower its responsibilities, which remains one of Southeast Asia’s lowest reciprocity responsibilities.
“We are still planning to negotiate it,” he said in a text message.
“United States”
The Philippine Trade Agency said it understands U.S. concerns over trade imbalances and its push to boost local manufacturing.
“However, global supply chains are closely interconnected and unilateral trade collections will have a negative impact on the global economy,” it said. “We therefore believe that constructive participation is needed to address the trade problem.”
U.S. trade in goods with the Philippines reached $23.5 billion last year, according to the Office of the U.S. Trade Representative. The U.S. exports to the Philippines were US$9.3 billion, up 0.4% from 2023, while the Philippines imports reached US$14.2 billion, up 6.9% year-on-year.
The Philippines’ U.S. commodity trade deficit widened to $4.9 billion in 2024, an increase of 21.8% from the same period last year.
Finance Minister Ralph G. Recto said the Philippines does not intend to retaliate. Trade negotiations are underway. [There are] There are no plans to increase tariffs on U.S. imports. ” he told BusinessWorld In the text message.
Mr Recto said the economy is expected to grow 5.5% to 6.5% this year despite the higher taxes.
Philexport President Sergio Ortiz-Luis (Jr.) described the U.S. tariff rate hike as “very unfortunate.”
“We don’t mind the increase from 17%, except for the reduction in tariffs on some of our major competitors, especially Vietnam,” he told him. BusinessWorld By phone.
The group expressed concern that the Philippines may no longer be able to offer trade concessions without damaging local industries.
Mr Ortiz-Luis pointed out that other countries currently negotiating with the United States enjoy more bargaining power.
“Unfortunately, they can negotiate because they have leverage that we don’t have, because we’ve given up,” he said. “We gave the United States [military] Base, they put ammunition here, we are buying used equipment from them, but other equipment does not. ”
Mr Ortiz-Luis urged the government to take the export sector and the micro, small and medium-sized enterprises (MSMEs) more seriously, warning that U.S. tariffs could still change by August 1.
“So far, this is just a verbal service in product development, joining international trade and marketing,” he said. “No significant funding comes from the government.”
He added: “These are things that are forgotten…these are investments that we cannot afford.”
He also said any future negotiations with the United States should emphasize the limited export volumes of the country.
“We can’t provide anything anymore. I can’t think of anything we can offer in terms of trade, except things that might affect the agricultural imports we import from the United States,” Mr Ortiz-Luis said.
He said that the government should not only focus on the tariff rate hikes implemented by the United States, but rather lead its efforts to export product development and market diversification.
Despite the tariffs reaching 20%, he is optimistic that the country can still achieve its revised export targets.
“We have abandoned the goal of the Export Development Commission. What we are using now is the PDP goal, and I think we can still achieve that.”
Robert M., chairman of the Philippines Foreign Buyers Association (FOBAP), Robert M.
“The second is that the call for improvement is often repeated to improve our production capacity and to easily conduct business to compete and remain within the scope of U.S. buyers,” he said on the phone.
Reyes Tacandong & Co. Senior consultant Jonathan L. Ravelas, Jonathan L. Ravelas, said in a Viber message that a 20% tariff could lead to weak exports, economic growth and investment uncertainty.
“Consider diversifying export markets, explore U.S. manufacturing partnerships, and leverage ASEAN trade networks,” Ravelas said.
He also called for accelerating dialogue on free trade agreements to mitigate the economic impact of tariff rate hikes.
The semiconductor and electronics industry of the Philippine Foundation (SEIPI) President Danilo C. Lachica said further clarification is needed to be made on the nature of the higher U.S. tariffs.
“It is still necessary to clarify whether 20% is the countdown or the total tariff,” he said.
“Wake up call”
The Philippine Chamber of Commerce and Industry (PCCI) said a 20% tariff could hurt local industries.
“This development emphasizes the importance of diversifying our export markets, strengthening regional trade partnerships and investing in domestic competitiveness,” said Enunina V. Mangio, president of PCCI, in Viber.
She urged the government to increase support for local industries amid increasing global trade pressures.
Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said 20% of the responsibilities are “still relatively low” and that most Philippine neighbors “have the potential to attract businesses elsewhere.”
But unless the Philippines improves its competitiveness, investors won’t come in. He said tax holidays, reducing corporate income tax, tax-free imports of equipment and raw materials, and subsidized infrastructure could attract investment.
Meanwhile, former tariff commissioner George N.
“It’s not as problematic as other countries exporting, such as Bangladesh – it exports a lot of clothing that is not exempt,” he said on the phone.
Trade Justice Pilipinas said higher U.S. tariffs should not only serve as a “wake call” for the Philippine government, but also address the wider ASEAN.
“Today’s tariff rate hikes are not only a trade issue; it reveals deep flaws in the development strategy of relying on exports, which puts our economy in mercy with global markets and political whims of foreign leaders,” it said in a statement.
The group urged the Philippines to use this moment as an opportunity to strengthen relations with its regional neighbors.
It added that the recent announcement should force the Philippines to reconsider and deepen regional solidarity with the ASEAN region. – Chloe Mari A. Hufana, Justin Ireland D. Table and Aubrey Rose A. Inosante and Reuters
