The relatively lower tariff imposed by the United States on Philippine goods has drawn the interest of several global manufacturers, according to the Department of Trade and Industry.
DTI Secretary Ma. Cristina Roque said the Philippines is seeing renewed interest from international garment manufacturers following the announcement of a 17-percent reciprocal tariff by the United States, which is lower than those planned for other countries.
“If our tariffs are lower, definitely a lot will come in to invest or reinvest,” Roque said, adding that she is set to meet with a major garments manufacturer from Hong Kong before the end of the month.
The company is reportedly considering transferring part of its production or expanding its existing operations in the country.
Roque said discussions are underway, noting that the potential investor is exploring ways to strengthen and grow production in the Philippines.
“The people are already talking to us. They’re planning to grow it already here in the Philippines. So, they’re transferring some of their operations,” she said.
The US on April 2 announced tariffs ranging from 10 percent to 49 percent on ASEAN goods. These include 49 percent on Cambodia, 46 percent on Vietnam, 44 percent on Myanmar, 36 percent on Thailand, 32 percent on Indonesia, 24 percent on Malaysia and Brunei, 17 percent on the Philippines and 10 percent on Singapore and Timor-Leste.
Roque said while the 17-percent tariff on the Philippines is expected to remain in place for now, she cautioned against making assumptions. “It’s hard to say. It’s hard for us to speculate. The best is really to just wait,” she said.
She said, however, the situation has opened a window for the Philippines to attract more interest from global manufacturers looking to diversify their production hubs.