The Philippines is positioned favorably concerning U.S. tariffs compared to its Southeast Asian counterparts, potentially leading to increased trade and employment opportunities, according to the Department of Trade and Industry (DTI). Trade Secretary Cristina Roque highlighted this strategic advantage during an interview on Teleradyo Serbisyo.
Tariffs, as a protectionist measure, impose duties on imported goods to maintain the competitiveness of domestically produced items. U.S. President Donald Trump has proposed increased tariffs, aiming to revive American jobs and manufacturing. Roque indicated that Philippine agricultural exports, such as coconut oil and dried mangoes, could benefit from lower U.S. tariffs compared to those on goods from Cambodia and Thailand.
Roque noted, "The prices of our goods will also rise, but the prices of goods from other ASEAN countries will be higher." Trump has declared a 17% tariff on Philippine goods, in contrast to 34% on Thai goods and 49% on Cambodian imports. Roque commented on this disparity, stating, "So that gives us now a really big spread... ang laki noon (that is huge)."
Philippine companies are reportedly gearing up to enhance production for export, anticipating the tariff adjustments that Trump announced would be delayed for 90 days. Roque cited a Cebu-based dried mango supplier that could gain a competitive edge over Cambodian products due to the new tariff rates. "He can do more, but the prices at the time were too high to compete, so he couldn't go on full capacity," Roque explained.
Roque emphasized that the potential for full-capacity production could lead to increased employment, stating, "The big companies are also preparing for this, so that means a lot of jobs will be created. " The DTI is also proactively seeking new markets for Philippine goods.
Trade negotiations are scheduled for mid-May in Washington, DC, where Roque and Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go will engage in discussions. The Philippines aims to underscore its close ties with the U.S. and its history of trade relations. Roque mentioned that ASEAN countries seek to negotiate with the U.S. collectively, although current efforts remain individual.
Source: ABS-CBN