By Justine Irish D. Tabile, <\/b>Journalist<\/i><\/p>\n
THE Philippine Exporters Confederation, Inc. (Philexport) stated that its members must broaden their markets due to the volatility of US trade regulations.<\/span><\/p>\n \u201cThe challenge is, considering Trump, the circumstances are still fl<\/span>uid. He could alter his stance on certain matters,\u201d Philexport President Sergio Ortiz-Luis, Jr. informed reporters.<\/p>\n \u201cThere are items currently exempted\u2026 These are aspects that he might reconsider,\u201d he mentioned.<\/p>\n Last week, US President Donald J. Trump declared a 90-day suspension on the tariffs he introduced on April 2. The April 2 tariff framework included some of the highest charges being enforced on members of the Association of Southeast Asian Nations (ASEAN).<\/span><\/p>\n Cambodia is subjected to a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia (24%), and Brunei (24%).<\/p>\n The Philippines was allotted a 17% tariff, the second highest in the region after Singapore\u2019s baseline rate of 10%.<\/p>\n With the 90-day suspension now effective, all countries will incur a blanket 10% duty until July, while discussions in Washington are ongoing with various national delegations.<\/p>\n Following a virtual conference on Thursday, ASEAN ministers pledged not to implement retaliatory actions in response to the US tariffs.<\/p>\n Mr. Ortiz-Luis expressed that currently, the Philippines holds a favorable position, but \u201cwe need to monitor the forthcoming changes as some are negotiating, some are retaliating, so I believe we should remain observant and quiet.\u201d<\/p>\n Specifically, Vietnam has indicated its readiness to reduce its tariffs on US products to zero.<\/span><\/p>\n When asked if this is a direction the Philippines should pursue, Mr. Ortiz-Luis remarked that the Philippines represents a relatively small market for the US.<\/span><\/p>\n \u201cWe are not a major exporter to the US \u2026 We don’t hold enough significance to influence the US,\u201d he stated.<\/span><\/p>\n He pointed out that implementing a zero rate on US goods would instead lead to supply chain complications rather than aiding exporters.<\/p>\n According to him, the Philippines must tackle its non-tariff obstacles.<\/p>\n \u201cEven with diminished tariffs here, that may not be adequate to mitigate issues like corruption and bureaucratic red tape, among others,\u201d he articulated.<\/p>\n In its 2025 National Trade Estimate Report, the Office of the US Trade Representative highlighted bribery and corruption as significant barriers to trade in the Philippines.<\/p>\n \u201cCorruption is a widespread and enduring issue in the Philippines. Both national and local government entities, especially the Bureau of Customs, are plagued by various corruption challenges,\u201d the report stated.<\/p>\n \u201cBoth international and domestic investors have voiced concerns regarding the opacity in judicial and regulatory procedures,\u201d it continued.<\/p>\n When inquired about which markets the Philippines should emphasize, he answered, \u201cChina. Previously, China was approaching the US as an export market.\u201d<\/p>\n \u201cIf you consider Greater China collectively, they surpass both the US and Japan combined. Hence, it is crucial that we persist in cultivating other markets,\u201d he added.<\/p>\n