Philippines' economy unlikely affected by new US tariff

The Philippines' economic output in 2025 is unlikely to be significantly affected by a new reciprocal tariff of 19 percent on exports to the US, which takes effect August 1.

Finance Undersecretary Domini Velasquez noted during a mid-year economic briefing that Philippine exports to the US are small compared to other regions and will have limited impact.

An economist remains hopeful of a 5.5 to 6 percent growth for the Philippine economy this year, citing domestic factors such as election spending, manageable inflation rates, and additional cuts in BSP key rates.

Trade Undersecretary Allan Gepty confirmed that negotiations continue on the specifics of the tariff rate but noted that 19 percent will be implemented starting August 1.

Velasquez and Gepty both acknowledged a potential rise in front-loading among US businesses to avoid higher tariffs, though specific impacts remain uncertain.