By Justine Irish D. Tabile, <\/b>Reporter<\/i><\/p>\n
THE DEPARTMENT of Trade <\/span>and Industry (DTI) announced on Monday that it is willing to consider lowering tariffs on goods from the US in retaliation to US President Donald J. Trump\u2019s enforcement of a 17% reciprocal tariff on products from the Philippines.<\/p>\n \u201cWe are really going to proceed with that\u2026 In fact, we, the economic team, will convene soon,\u201d Trade Secretary Ma. Cristina A. Roque informed reporters on Monday.<\/p>\n She stated that the Philippines is \u201ccertainly\u201d examining the possibility of decreasing tariffs on American merchandise, but emphasized that the economic team will deliberate on the magnitude of what the Philippines can propose.<\/p>\n Ms. Roque\u2019s comments followed the agreement between US and Vietnamese leaders to discuss a \u201cdeal to eliminate tariffs\u201d after a \u201chighly productive phone conversation\u201d on April 4, according to Reuters.<\/p>\n Ms. Roque mentioned that the Philippine government is also exploring a joint response with other member nations of the Association of Southeast Asian Nations (ASEAN) to counter the elevated US tariffs.<\/span><\/p>\n On Sunday, Malaysia\u2019s Prime Minister Anwar Ibrahim urged for a unified ASEAN reaction to the US tariffs. He indicated that Malaysia, in its role as ASEAN chair, is prepared to spearhead efforts to \u201censure ASEAN\u2019s collective voice is distinctly heard on the global platform.\u201d<\/span><\/p>\n The US imposed some of the highest tariffs on ASEAN nations, scheduled to take effect on April 9. Cambodia faces a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (45%), Thailand (37%), Indonesia (32%), Malaysia (24%), and Brunei (24%).<\/p>\n In comparison to its regional counterparts, the Philippines\u2019 tariffs are among the lowest, only trailing Singapore, which has a baseline rate of 10%.<\/p>\n Malaca\u00f1ang stated on Monday that the administration is implementing measures to mitigate the effects of the 17% reciprocal tariff but refrained from providing specifics.<\/p>\n \u201cI am aware that actions will be undertaken that will benefit our nation,\u201d Palace Spokesperson Cla<\/span>rissa A. Castro expressed during a news conference.<\/span><\/p>\n In 2024, the Philippines imported $8.17 billion worth of goods from the US and exported $12.14 billion worth of products to the US, data from the statistics agency indicated. This resulted in a trade surplus of $3.97 billion last year.<\/span><\/p>\n The US is a vital source of agricultural imports, constituting about 20% of the Philippines’ total imports.<\/p>\n Previously, the DTI indicated its goal to engage the US in discussions to pursue a mutually advantageous trade agreement.<\/p>\n Specifically, Ms. Roque said she aims to facilitate improved market access for key US export interests, such as automobiles, dairy products, frozen meats, and soybeans, as part of a bilateral free trade agreement framework.<\/span><\/p>\n \u2018CAUTIOUS\u2019 \u201cPerhaps after today, we\u2019ll exercise more caution as we move into the second and third quarters\u2026 There\u2019s a significant wait-and-see mentality among manufacturers and companies regarding the effects of the global tariff,\u201d EMS <\/span>Group Chairman and Chief Executive Of<\/span>f<\/span>icer Ferdinand \u201cPerry\u201d <\/span>A. Ferrer shared with BusinessWorld<\/i> during a phone discussion on April 3.<\/span><\/p>\n EMS Group is a comprehensive electronic, semiconductor, and medical subcontracting organization that offers technological and manufacturing solutions.<\/p>\n Mr. Ferrer stated that many domestic firms and international companies have postponed expansion plans in anticipation of the tariff announcement.<\/span><\/p>\n \u201cThe ripple effect is felt throughout the supply chain, which impacts the Philippines,\u201d he remarked.<\/span><\/p>\n Mr. Ferrer added that the relatively lower tariff rate on the Philippines in comparison to neighboring nations positions it in a \u201cfavorable situation\u201d to attract future investments.<\/span><\/p>\n \u201cAs we progress, we anticipate that we will conduct campaigns in our partner countries, including Taiwan, Japan, of course the United States, and some European Union nations, to facilitate the influx of essential foreign direct investments (FDIs) in manufacturing services,\u201d he stated.<\/span><\/p>\n Earl Lawrence S. Qua, president of the Electronics Industry Association of the Philippines, emphasized that the government should strive to collaborate with the US to lessen the tariffs.<\/span><\/p>\n \u201cWe need to ensure that we do not escalate the situation further and aim to negotiate with the US to reduce tariffs. For now, we need to wait and see how these tariffs will be enforced,\u201d Mr. Qua stated.<\/span><\/p>\n Nonetheless, Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, mentioned that while the 17% tariff \u201cmight appear minimal,\u201d the consequences would be more significant in comparison to other nations given that the US is the top export destination for the Philippines.<\/span><\/p>\n \u201cTo presume that other countries would choose the Philippines because of the reduced tariffs is as illogical as the tariffs imposed by Trump,\u201d Mr. Lanzona commented.<\/span><\/p>\n In 2024, the US remained the primary destination for Philippine exports, constituting 17% of the total.<\/span><\/p>\n COUNCIL \u201cThe initiative to establish an Economic Security Council is vital considering the global business threats presented by US tariffs, along with the geostrategic factors that the Philippines must now factor into these still uncharted territories,\u201d stated PEZA Director-General Tereso O. Panga in a Facebook update.<\/p>\n \u201cAt PEZA, we believe it is essential to create a concrete roadmap to advance collectively \u2014 taking advantage of opportunities while diminishing the impact of tariffs on global trade involving the Philippines,\u201d he added.<\/p>\n
\n<\/b>Meanwhile, Philippine manufacturing companies are expected to adopt a more cautious stance amid the uncertainty stemming from Mr. Trump\u2019s tariff policies, according to an executive from an electronics firm.<\/p>\n
\n<\/b>Meanwhile, the Philippine Economic Zone Authority (PEZA) asserted that it is imperative for the Philippine government to form an Economic Security Council in light of the new US tariffs.<\/span><\/p>\n