P30 billion revenue loss possible with US goods tariff exemption

The Philippines may lose up to P30 billion in revenue if it grants zero-tariff status to select American goods, according to the Bureau of Customs.

This potential loss impacts collections from US imports like vehicles, pharmaceuticals, and soybeans.

The Philippines had previously agreed in principle to exempt US cars, wheat, soybeans, and medicines from domestic tariffs in response to US tariff threats, though zero tariffs have not been formally granted.

Meanwhile, export sales may only reach between $105 billion and $110 billion this year, a slowdown from previous projections.

This revised forecast is attributed to slower orders from the United States following the implementation of reciprocal tariffs, causing US buyers to become cautious or disappear, according to Philexport President Sergio R. Ortiz-Luis, Jr.

Despite these uncertainties, Japan Credit Rating Agency (JCR) believes the Philippines would remain "remarkably resilient" to external shocks due to healthy gross international reserves exceeding $100 billion and steady capital inflows.

JCR recently affirmed the Philippines' "A-" rating with a "stable" outlook, indicating low credit risk.