PH auto parts makers eye 20% boost in US orders
Local manufacturers and exporters of automotive parts are projecting a 20-percent increase in orders from the United States, driven by the latest tariff measures imposed by the Trump administration.
Rommel Juan, Philippine Parts Makers Association (PPMA) vice president, said that while initial expectations point to softer demand overall, industry players are optimistic that the Philippines’ lower tariff rate of 17 percent will attract more orders compared to other countries facing steeper levies.
“Definitely, I think we have an advantage because in some of the parts that we produce, our competitors are China, India and Vietnam,” he said in a phone interview.
To recall, the United States imposed steep import tariffs of 46 percent on products from Vietnam, 26 percent on India and a massive combined tariff of 145 percent on China.
“We’re starting to call our customers in the United States now. There’s no feedback yet but we’re expecting that they’ll be ordering more from us,” he added.
He said they expect the US market to grow beyond its current multi-billion peso valuation.
With this in mind, he said the local exporters were already mapping out plans to scale up production.
He said some firms were also reviewing their supply chain strategies to ensure timely delivery and quality compliance with new US orders.
Adjustments
Despite the optimism, Juan emphasized that the projected growth hinges on how the US tariffs are implemented and how buyers adjust their sourcing strategies in the coming weeks.
On April 2, Trump unveiled a new 17-percent tariff on exports from the Philippines, originally set to take effect on April 9.
But in an unexpected move on the same day the measure was to be enforced, he announced a temporary suspension of the tariff, allowing room for renewed negotiations with affected trade partners, including the Philippines.
