Marcos economic team heads to Washington amid US tariff hike

Metro Manila, Philippines - The government’s economic managers are bound for Washington next week to hold talks with US counterparts in light of the 20 percent reciprocal tariff on Philippine products.

Frederick Go, special assistant to the president for investment and economic affairs, said trade officials will join him in the trip.

“So, myself together with DTI Secretary Cris Roque and Undersecretary Perry Rodolfo and Undersecretary Allan Gepty will be flying to the United States next week – this is actually a scheduled trip even before today’s announcement,” said Go.

The Philippines received a formal notification from the United States about the reciprocal tariff wherein a 20 percent rate will be applied to Philippine products entering the North American nation.

Go noted that the country’s rate remains the second lowest in the region - next to Singapore’s 10 percent.

“We are concerned that the US has decided to impose a 20 percent tariff on Philippine exports,” Go said.

“But more importantly than all of these, we remain committed to continuing negotiations… to pursue a bilateral comprehensive economic agreement or, if possible, an FTA (free trade agreement),” he added.

Go said while the tariff is broadly applied, certain sectors like semiconductors and electronics, the top exports to the US, because of US national security priorities.

“Karamihan ng ating exports ng semiconductors ay hindi covered ng tariffs,” Go said, though adding that the government has yet to confirm if this is so under the reciprocal tariff policy.

[Translation: Most of our semiconductor exports are not covered by the tariffs.]

Asked about the broader economic impact, Go said the National Economic and Development Authority is calculating potential effects in relation to other countries' rates.

He downplayed the importance of the tariff hike compared to the larger goal of forging a bilateral comprehensive economic partnership or FTA with the US.

“More important than trying to bring down the reciprocal tariffs… ang mas malaking bagay ay kung makakakuha tayo ng FTA,” Go said.

[The bigger goal is if we can get an FTA.]

He also clarified that the US letters sent to the Philippines and other ASEAN (Association of Southeast Asian Nations) members such as Malaysia and Indonesia appeared templated, with only the tariff rates adjusted per country.

“Huwag ninyong masyadong dibdibin ‘yung sulat,” Go said.

[Translation: Don’t take the letter too personally.]

While Vietnam was also given a 20 percent rate, Go said Manila’s position remains competitive due to different tariff structures on the ASEAN neighbor and existing exemptions.

Go said there are no retaliatory tariffs,adding that further talks with US officials will be crucial.