Philippines preparing plans to respond to tariffs

MANILA, Philippines, April 27 ------ The Philippines is taking action in response to the 17 percent reciprocal tariff on exports to the US, Malacañang said, as fears persist over a possible worldwide economic recession and spike in prices driven by the new tariff regime. “I know there will be an action that will favor our country. But I cannot give the details until the talks are final,” Presidential Communications Undersecretary Claire Castro said at a briefing. 

She said the administration is definitely crafting plans to address the tariffs to be implemented by the US – a traditional ally and major trading partner of the Philippines. “The action on this will be good, but I cannot provide the details until an action is made. There are plans already and I will give you the details once the plans are final,” she added. 

It was not clear if the plans include reducing tariffs on US goods, as what Trade Secretary Cristina Roque told reporters yesterday. “We’re really going to do that,” Roque replied, when asked if the Philippines would be willing to bring down tariffs on imports from the US following Vietnam’s offer to remove tariffs on US goods. She said the economic team is going to meet soon to discuss the matter. 

According to a Bloomberg report, Vietnamese communist party chief To Lam made the offer in a letter to US President Trump. Vietnam also asked for a postponement of the implementation of the reciprocal tariff for at least 45 days. The so-called Liberation Day tariffs, which will take effect on April 9, will cover more than 100 countries, including China and those in the European Union. Justifying his controversial move, US President Donald Trump claimed that US has been “looted, pillaged, raped, plundered” by other nations and that the new tariffs would “make America wealthy again.” 

The 17 percent tariff to be imposed on the Philippines is comparatively lower than the rates set for other countries, but is higher than the 10 percent baseline figure for Britain and Singapore. The tariff rates for other Southeast Asian countries are 49 percent for Cambodia, 46 percent for Vietnam, 36 percent for Thailand, 32 percent for Indonesia and 24 percent for Malaysia. Exports from China and the EU will be levied with 34 percent and 20 percent tariffs, respectively. 

Source: philstar.com