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MANILA, Philippines – The Philippine Chamber of Commerce and Business (PCCI) has urged the Marcos administration to decrease tariffs on US imports and pursue a reciprocal commerce settlement, aiming to mitigate the opposed financial results of President Donald Trump’s proposed tariffs on Philippine exports.
This name aligns with Vietnam’s latest initiative to scale back tariffs on U.S. merchandise to zero in alternate for comparable concessions, highlighting a regional strategy to addressing commerce imbalances.
“That’s one thing that I feel we should always contemplate, the federal government ought to contemplate, in session with the personal sector,” PCCI chair George Barcelon informed reporters on the sidelines of their normal membership assembly on Tuesday on the Diamond Makati Lodge.
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This comes as Vietnam has expressed willingness to slash import tariffs on US merchandise to zero, and proposed reciprocal reductions from America in return.
Barcelon famous {that a} comparable transfer would profit the Philippines, because the nation’s electronics and agriculture exports are anticipated to be hit laborious by Trump’s 17-percent tariff on imports from the Philippines.
The nation’s largest enterprise group had warned of a possible financial fallout from US tariffs that may make Philippine items costlier, thus dampening demand and ultimately hurting company revenues.
Low tariff
Though 17 p.c is among the many lowest in comparison with different member-economies within the Affiliation of Southeast Asian Nations which have a commerce surplus with the USA, the PCCI stated that the uncertainties over which particular export merchandise will probably be affected leaves native industries weak to potential disruptions.
Southeast Asian international locations had been slapped among the many highest tariffs which can be set to take impact this week.
Cambodia was slapped with 49 p.c adopted by Laos, 48 p.c; Vietnam, 46 p.c; Thailand, 36 p.c; Indonesia, 32 p.c; Malaysia, 24 p.c; Brunei, 24 p.c, and Singapore, 10 p.c.
“The USA has but to announce the precise protection however we stay vigilant as such tariffs usually goal particular classes of products reminiscent of meals and agri merchandise and electronics, that are our main exports,” the PCCI stated in a press release.
The PCCI added that it was cautious of the potential affect the actions different international locations might soak up response to the USA’ reciprocal tariffs.
Damaging impact
“Retaliatory measures can disrupt world provide chains, improve prices and create uncertainty for companies and customers, bringing a few broad detrimental impact on financial development,” it stated.
The PCCI additionally highlighted that the affect of those tariffs could possibly be particularly difficult for the Philippines, given its remittance- and consumer-driven economic system.
It additional warned that the ripple impact of rising prices may hit small companies the toughest, notably these in sectors like agriculture and meals processing, that are already working on tight margins.
In closing, the PCCI said that it was ready for the federal government’s remaining response and can intently monitor how neighboring international locations proceed earlier than figuring out its subsequent steps. INQ
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