Unlike most peers, PH seen to benefit from US tariff concessions
Countries like the Philippines and Singapore could benefit from tariff concessions if negotiations with the Trump administration progress favorably, according to Dutch financial giant ING Bank, which flagged the building pressure on Asian economies facing higher-than-expected post-Liberation Day tariffs.
Deepali Bhargava, regional head of research for Asia Pacific at ING, said the Philippines—which is not on the new tariff list issued by US President Donald Trump—may be closer to finalizing trade deals with America, potentially giving it a competitive edge.
As it is, Singapore and the Philippines were the only two Southeast Asian countries that did not receive a tariff notification letter from Mr. Trump. Notably, these two also have the lowest reciprocal tariff rates—10 percent for Singapore and 17 percent for the Philippines—that were previously announced.
But for others in the region, Bhargava said the outcome of the 90-day tariff pause was worse than expected. Only three countries in Asia, namely Cambodia, Bangladesh and Laos, received tariff rates that were lower than the rates announced last April 2.
“The US remains a vital export destination, accounting for roughly 17 percent of the Philippines’ total exports as of 2024. About 53 percent of these exports are electronic products, a sector in which the Philippines competes directly with countries like Vietnam and India for US market share,” Bhargava wrote.
Negotiations ongoing
“Given this context, any reduction or concession on the current 17-percent reciprocal tariff rate would give the Philippines a competitive edge, particularly in electronics, and strengthen its position against regional peers,” she added.
Frederick Go, Special Assistant to the President for Investment and Economic Affairs, earlier told the Inquirer that the Philippines “continues to engage” with the United States to establish a “working framework” that would benefit both nations.
Such a framework, Go said, “would enhance both our economies and address tariff concerns as well as business conditions for both our enterprises to thrive.”
Speaking to reporters on Wednesday, Department of Economy, Planning and Development Undersecretary Rosemarie Edillon said, “it’s really difficult to ascertain what it (tariffs) will be for” the Philippines.
“We’re still waiting. There were negotiations anyway that happened before, so we’re just waiting for the decision. And we hope it will still be favorable,” Edillon said.
