Recto: P6B annual revenue loss from US import zero tariffs

Finance Secretary Ralph Recto stated that the Philippines could lose up to P6 billion annually in revenue due to its decision to grant zero tariffs on selected US imports.

Recto explained that this estimate covers revenues from imported products like cars, wheat, soybeans, and pharmaceuticals, which would benefit Filipino consumers but reduce government income.

US President Donald Trump recently announced a 19% tariff rate on Philippine goods during his meeting with President Ferdinand Marcos Jr. in Washington last week, lower than the previously proposed 20%, but higher than the earlier 17% rate.

Recto noted that despite initial impacts on exports, the overall deal is beneficial for the Philippines due to its lower tariff rates compared to other countries and because the products given zero tariffs do not compete with local industries.

Economists suggest the agreement's economic impact on the Philippines would be limited given the country's low dependence on US demand compared to other Asian economies.

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. added that only certain goods are affected and the overall economy is not significantly impacted by these tariffs.

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