Philippine economy resilient against US tariffs

The Philippine government remains optimistic about its economy's resilience against potential disruptions from US President Donald Trump's new tariff policies despite a 17% tariff on Philippine exports starting April 9.

Finance Secretary Ralph Recto asserts that domestic demand drives the country’s economic growth, making it less susceptible to trade wars and positioning the Philippines as a major hub in global value chains for industries like electronics, textiles, food, and automobiles.

Despite higher tariffs imposed by the US on other ASEAN nations such as Vietnam (46 percent), Thailand (36 percent), Indonesia (32 percent), Malaysia (24 percent), and Cambodia (49 percent), Philippine exports to the US face a lower rate compared to its neighbors.

The government views this situation as an opportunity for strategic growth, leveraging incentives like the CREATE MORE Act to attract foreign investments interested in expanding or relocating businesses within the Philippines.

Amid intensifying trade tensions, Recto emphasized the importance of diversifying export markets and actively pursuing more free-trade agreements with countries such as the United Arab Emirates (UAE), the European Union (EU), Chile, and Canada.