Gov’t urged to take ‘preemptive’ steps vs effects of US tariffs
The government should grant tax breaks and ease financing access to boost Philippine economic resilience amid the current tariff regime of the United States, a House leader said on Thursday.
Albay Rep. Joey Salceda, chair of the House ways and means committee, submitted a memorandum to President Marcos, Speaker Martin Romualdez and Special Assistant to the President for Economic Affairs Frederick Go outlining “immediately actionable administrative responses to mitigate the risks and seize the opportunities arising from the United States’ 2025 tariff adjustments.”
“While the Philippines has been assessed a relatively moderate tariff rate of 17 percent, compared to significantly higher rates imposed on regional peers, preemptive and coordinated executive action remains essential,” he said.
He recommended that the government grant tax holidays and enhanced deductions to US-oriented firms seeking relocation or market diversification by granting them automatic Tier II status under the CREATE law.
At the same time, he also urged the Philippine Guarantee Corp., the government’s export credit agency, to relax credit access rules for exporters adjusting to the new supply chains and buyer markets.
Aside from helping affected businesses find new markets and reduce costs for exporters, Salceda also pushed the government to boost support for local industries.
He suggested that the government direct all procuring entities to prioritize local sourcing from industries affected by the tariff regime—especially electronics and apparel—to “stimulate domestic demand for their output.”
No new laws needed
Salceda also recommended that the Philippine Economic Zone Authority, which runs 396 economic zones around the country, make it simpler for exporters in special zones to adjust their market contracts and shipments.
“These administrative actions require no new legislation. They are all executable through board resolutions, department orders, circulars and executive issuances within the powers of the President and the Cabinet,” the congressman said.
“They serve to not only defend Philippine economic resilience but actively position the country as a strategic trade and investment hub during global realignment,” he added.
His memo comes over a month after the United States, as ordered by President Donald Trump, raised retaliatory tariffs in response to longstanding trade imbalances and political disagreements.
The Philippines, while spared from the most punitive measures handed over to most Southeast Asian nations, still faces an 17-percent tariff rate on exports to the United States.
