Philippine GDP may drop 0.1% over three years due to US tariffs, economic team warns

The government's economic team estimates that U.S. President Donald Trump's new tariffs could reduce the Philippines' GDP by 0.1% over three years, based on current projections.

Former agriculture secretary Leonardo Montemayor and NEDA Secretary Arsenio Balisacan warned that despite lower tariffs compared to other countries, Philippine products might face reduced demand in the US market.

The economic team met with President Ferdinand Marcos Jr. to assess the impact of higher U.S. tariffs on various industries and discussed potential measures to support exporters.

Philippine businesses are generally resilient and are advised to look for alternative markets if they lose one market due to increased tariffs.

The government has initiated dialogue with the US Trade Representative (USTR) to negotiate a Free Trade Agreement (FTA) and is scheduling a trip to the United States for further discussions.