Trump slaps 17% tariff on Philippine exports to US

MANILA, Philippines, April 4 ------ US President Donald Trump has unveiled a raft of punishing tariffs targeting countries including the Philippines and some of its closest trading partners, in a move that risks sparking a ruinous trade war. Speaking at the White House Rose Garden against a backdrop of US flags on Wednesday, Trump slapped the most stinging tariffs on China and the European Union on what he called “Liberation Day.” 

The dollar fell one percent against the euro and slipped against other major currencies as Trump was speaking. “For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said. He reserved some of the heaviest blows for what he called the “nations that treat us badly,” including 34 percent on goods from superpower rival China, 20 percent on key ally the European Union and 24 percent on Japan. But the 78-year-old Republican – who held up a chart with a list of levies – said that he was “very kind” and so was only imposing half the amount that those countries taxed US exports. For the rest, Trump said he would impose a “baseline” tariff of 10 percent, including Britain. 

In Manila, Presidential Communications Undersecretary Claire Castro described as “very minimal” the potential impact of Trump’s tariffs scheme on Philippine products. “We believe in the good relationship of the US-Philippines alliance so the imposition of the 17 percent was probably a result of a study of the US government so we are accepting it and whatever will be its impact, we have to respond to it appropriately,” Castro said. “But as of the moment, the DTI (Department of Trade and Industry) said its impact on us would be very minimal,” she added. 

An audience of cabinet members, as well as workers in hard hats from industries including steel, oil and gas, whooped and cheered as Trump said the tariffs would “make America wealthy again.” “This is Liberation Day,” Trump said, adding that it would “forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed.” Sweeping auto tariffs of 25 percent that Trump announced last week were also due to take effect at 12:01 a.m. Thursday. 

Trump has telegraphed the move for weeks, insisting tariffs will keep the US from being “ripped off” by other countries and spur a new “Golden Age” of American industry. But many experts warn the tariffs risk triggering a recession at home as costs are passed on to US consumers, and a damaging trade war abroad. Trading partners of the US have vowed swift retribution, while also trying to persuade Trump to reach deals to avoid tariffs in the first place. 

Germany warned Wednesday that trade wars hurt “both sides.” The European Union will react to new Trump tariffs “before the end of April,” said a French government spokeswoman. The 27-nation bloc’s initial salvo would counter US actions on steel and aluminum, followed by sector-by-sector measures. British Prime Minister Keir Starmer said a “trade war is in nobody’s interests.” “We have prepared for all eventualities – and we will rule nothing out,” he told parliament. 

Trump has had a long love affair with tariffs, insisting in the face of experts that they are a cure-all for America’s trade imbalances and economic ills. The billionaire insists the levies will bring a “rebirth” of America’s hollowed-out manufacturing capacity, and says companies can avoid tariffs by moving to the United States. 

Source: philstar.com