BOI: New US auto tariff deal won't affect PH-made Japanese cars

The Board of Investments (BOI) has assured that locally manufactured Japanese cars will remain unaffected by the new tariff agreement between the Philippines and the United States, which eliminates tariffs on imported American automobiles.

Japanese automakers Toyota and Mitsubishi have established significant production facilities in the Philippines, manufacturing popular models such as the Mirage, L300, Vios, Innova, and Tamaraw.

BOI Managing Head, Undersecretary Ceferino Rodolfo, expressed confidence that US car companies will likely import larger, more expensive vehicles, making it difficult for them to compete with locally produced sedans in the Philippine market.

The BOI also noted that the luxury electric vehicle brand Tesla, even if it enters the market, would automatically benefit from zero percent duty due to being an electric vehicle, and most units seen locally are imported from China, not directly from the US.