THE Philippine Chamber of Commerce and Industry (PCCI) has urged the Marcos administration to consider lowering tariffs on US imports and push for a reciprocal agreement similar to Vietnam’s to contain the adverse economic impact of US President Donald Trump’s tariffs.
“That is something that I think we should consider, the government should consider, in consultation with the private sector,” PCCI chair George Barcelon told reporters on the sidelines of their general membership meeting on Tuesday at the Diamond Makati Hotel.
This comes as Vietnam has expressed willingness to slash import tariffs on US products to zero and proposed reciprocal reductions from America in return.
Barcelon noted that a similar move would benefit the Philippines, as the country’s electronics and agriculture exports are expected to be hit hard by Trump’s 17 percent tariff on imports from the Philippines.
The country’s largest business organization had warned of a potential economic fallout from US tariffs that would make Philippine goods more expensive, thus dampening demand and eventually hurting corporate revenues.
Although 17 percent is among the lowest compared to other member economies in the Association of Southeast Asian nations that have a trade surplus with the United States, the PCCI said that the uncertainties over which specific export products will be affected leave local industries vulnerable to potential disruptions.
Southeast Asian countries were slapped with some of the highest tariffs that are set to take effect this week.
Cambodia was slapped with 49 percent, followed by Laos, 48 percent; Vietnam, 46 percent; Thailand, 36 percent; Indonesia, 32 percent; Malaysia, 24 percent; Brunei, 24 percent; and Singapore, 10 percent.
“The United States has yet to announce the exact coverage, but we remain vigilant as such tariffs typically target specific categories of goods such as food and agri products and electronics, which are our major exports,” the PCCI said.
It added that it was wary of the potential impact the actions of other countries may take in response to the United States’ reciprocal tariffs.
The PCCI also highlighted that the impact of these tariffs could be especially challenging for the Philippines, given its remittance- and consumer-driven economy. (Alden M. Monzon © Philippine Daily )
