The Philippine government is carefully assessing the impact of the 17-percent tariff imposed by the United States under President Donald Trump, while expressing optimism that the country can turn the situation into an economic opportunity.
Palace Press Officer Claire Castro said on Monday the government will navigate this new trade policy set by its closest ally, noting that the move could have both positive and negative effects on the Philippine economy.
“For now, we don’t have details yet on which industries will be affected. However, this 17-percent tariff could still be considered favorable compared to higher tariffs imposed on other countries,” Castro said in a press briefing.
“The Philippines has the second lowest rate, next to Singapore, and according to the Department of Trade and Industry (DTI), its impact will be minimal,” she pointed out.
Despite the additional tariff, Malacañang believes the long-standing US-Philippines alliance factored into the decision. Castro emphasized that while the government acknowledges potential economic repercussions, it remains confident in managing them.
The Marcos administration is evaluating steps to mitigate any negative effects, particularly on exports to the US. However, Castro noted that the Philippines’ trade volume with the US is not substantial enough to cause a major disruption.
“We will coordinate with the DTI and the Department of Finance (DOF) to analyze the potential impact of the 17-percent tariff,” she said. “At the moment, reports suggest that Philippine exports to the US are not significant enough for this to have a severe effect.”
The government also sees a potential silver lining in the policy shift. The relatively lower tariff could encourage foreign investors from heavily affected countries to set up manufacturing operations in the Philippines.
“This policy can be both negative and positive. If foreign companies face higher tariffs elsewhere, they may consider the Philippines as an alternative manufacturing hub because of the lower tariff rate,” Castro explained.
As of now, the Philippine government has not indicated any plans to appeal or renegotiate the tariff with the US. Castro said the government is awaiting further discussions on the matter and will provide updates if any developments arise.
“This is the decision of the US government, and if they believe it is necessary for their economic growth, we respect that. The 17-percent tariff, being the second lowest, is still relatively manageable,” she said.
While acknowledging that the tariff will result in higher costs for certain industries, the government remains focused on exploring ways to adapt to the evolving trade landscape. The Palace reiterated that it will closely monitor the situation and work with relevant agencies to address any challenges that arise.