The Department of Trade and Industry said the trade war between the US and China will not have a major impact on the Philippine exporters.
The US said it was imposing a tariff of 25 percent on $50 billion worth of exports from China, which, in turn, announced retaliatory moves against the US.
“This will have a huge impact on the economies of the two countries, as their higher import costs will affect their respective consumers and imported inputs-using manufacturers,” Trade Secretary Ramon Lopez said.
US lawmakers agreed, expecting the trade volume between the two countries to decline.
Lopez said the trade war might backfire on the US cost and competitiveness and would affect American industries.
The situation could also encourage affected manufacturers to shift their production activities to other countries like the Philippines.
Philippine exports have started reviewing product lists that the Philippines can easily supply.
The other trade moves of US were not country-specific but product specific and would China and other countries as well, Lopez said.
“Invoking Section 201 of US Trade Act, the US can impose duties and non-tariff barriers on products that injure or threaten to injure their local industries. Affected products are solar panels and washing machines, Lopez said.
“For the Philippines, there is no impact for washing machines, but there is an impact for solar panels since there is one major exporter Sunpower Inc. The company has submitted (its)position for exemption,” he said.
The US may also impose the tariff on sensitive products to address issues on national security, like steel at 25 percent tariff and aluminum at 10 percent.
While the Philippines is a not a major exporter of steel and aluminum, trade representatives are meeting with the US Trade Representative for an exemption.
“As we see no major impact to the Philippines, we may stand to benefit if other affected manufacturers in countries affected shift their production base to the Philippines to avoid facing higher tariff rates,” said Lopez adding the Philippines still enjoyed the General System of Preference privilege with the US, covering 3,500 product lines that enter the US market at zero percent duty.