DA chief: Phl should boost US sales with lower tariffs than ASEAN

It was disappointing that the Philippines was not included in the list of countries that were served a baseline 10-percent tariff increase, given that it has a relatively low trade surplus with the US and has been an ally of the US for some time,

she told The Manila Times

As far as agriculture is concerned, among the country’s competitors for exporting to the US are Indonesia, Vietnam, and Thailand.”

In a press conference in Quezon City Thursday, Laurel said

Provided that the lower tariffs on Philippine imports at 17% would be significant versus the overall cost of production compared to other Asian/ASEAN countries, other ASEAN/Asian countries with higher U.S. import tariffs could look for alternative export markets other than the U.S., such as more exports to the Philippines,

he told DAILY TRIBUNE

If the tariffs result in retaliations, then it would slow down the global economy. Given its negative consequences on the Philippine and global economy, the tariffs are expected to weigh on the local stock market,

Tantiango added

We view with guarded optimism that the recent US imposition of reciprocal tariffs will provide strategic opportunities for the Philippines to improve its economic relationship with the US,

Roque said

Based on the tariff rates I’ve seen, we have the lowest. We are among the lowest among our neighbors. So, it just means that we should push for more sales to the US of our products,

he added

We are carefully studying the impact of reciprocal tariffs on agri-based products, particularly food exports, noting that these are not covered by the exemptions,

Roque said

It may even cause the Fed to completely halt, if not reverse, its policy easing, which in turn could have a ripple effect on other monetary policies across the globe, especially in emerging markets,

said Japhet Tantiango of Philstocks Financial, Inc

If we are lower than our competitors, then it does not necessarily mean that it will be bad for us, as a matter of fact, it might even be an opportunity,

Philexport President Sergio Ortiz-Luis said

Technically, if you look at it from a general perspective, this is positive for us. We have lower tariffs compared to others. But of course, we need to look at it per commodity,

he noted

It depends on the commodity.”

When asked if this is good news, the Agri chief said

Because there are commodity exemptions that we need to look into. [S]o, please give me one week and we will give you a definite positive and negative,

he added

[T ... T]he government sees opportunities arising from [this] global trade development,

he added

With lower tariffs than Thailand, Philippine coconut exports can be more competitive,

she said

Sometimes, you know, imposing these kinds of tariffs may have a downside for the US consumer, so [Trump] might react later on and change it,

he said

The bottom line is that it is arbitrary and unhelpful for the conduct of commercial exchange. It also brings the weaponisation of trade policy to new heights, which may force trading partners to consider the de- risking not from China, but from the US,

said Menon

Trump is doing what he sees as levelling the playing field in trade relations and he pays particular attention to the countries which are closely allied with China,

said Woo

The Americans are taking the ball home and they are not going to play football with you. So (ASEAN) has to come up with our own game,

said Woo

Vietnam which is the latest darling in terms of Western foreign direct investment in Southeast Asia is perhaps hardest hit, and it would have to reduce its tariffs against American goods to hopefully having tariffs against its goods lowered,

Oh said

ASEAN countries should resist the temptation to retaliate, mainly because tariffs hurt the countries imposing them more than anyone else. This is the right response from an economic point of view, but the situation may differ politically,

said Menon