Gov’t still hopes for further US tariff cuts before Aug. 1
The government is hoping that the Trump administration will further slash the 19-percent tariff on Philippine exports to the United States before the new import duty takes effect on Aug. 1.
Trade Secretary Cristina Roque, however, pointed out that the Philippines cannot offer additional concessions beyond what was already made under the new trade accord with the US government.
“The ball is not in our court,” Roque said when asked if there’s a possibility of a reduced US tariff rate.
“We’re hoping that it will be done by Aug. 1,” she added on the sidelines of the National Trade Fair 2025 opening ceremony on Friday.
Full disclosure sought
The Federation of Free Farmers (FFF) has asked the Marcos administration to fully disclose the results of its negotiations with Washington, citing conflicting statements from both countries and speculations on what transpired behind the scenes.
“Unfortunately, these claims by our government officials have not been corroborated by the US government, which may later on insist on a wider range of affected products or a blanket application on all products, as what reportedly was imposed on Indonesia and Vietnam,” FFF national manager Raul Montemayor said in a statement on Friday.
Montemayor claimed the Philippine government made additional commitments in exchange for a 1-percentage-point tariff cut, such as loosening import quarantine regulations, increasing minimum access volumes and retaining low import duties on rice, pork, corn and other commodities.
Although the US asked for a zero tariff for all their goods entering the country, Roque said government negotiators opted to offer other industries in negotiating for better terms with America.
“That’s the best we can give,” Roque said, reiterating their previous stance that agricultural and manufacturing industries are off the table in ongoing talks.
“We cannot give the agriculture [sector]. Sugar, let’s say the rice, we cannot give that,” she added.
The Philippines offered the US an open market and zero tariffs only on certain goods, mostly those that are not mainly produced locally, including automobiles, soy, wheat and pharmaceuticals.
The Philippine Chamber of Agriculture and Food Inc. (Pcafi) welcomed the latest positive developments in the US-PH trade discussions but said it will watch developments to ensure the government protects the interests of farmers and fishers.
“We will remain vigilant in the ongoing bilateral negotiations since the final trade deal has yet to be finalized,” Pcafi president Danilo Fausto said in a statement on Friday.
“The two clear concessions that the Philippines made—wheat and soy products—will not result in significant damage to local industries but may even yield positive results in the form of cheaper animal feed products,” he added.
Not a game-changer
The Philippine Chamber of Commerce and Industry (PCCI) said the incremental tariff reduction is a “step in the right direction for bilateral trade relations” but not a game-changer.
“Realistically speaking, a [1-percentage-point] reduction is unlikely to trigger a massive surge in exports. The impact will be most felt by specific industries already exporting the affected goods,” PCCI president Enunina Mangio said in a statement on Friday.
Mangio said the modest decrease in US tariffs translates directly to lower costs of Philippine exports to the US market against those nations slapped with higher import duties.
This “provides exporters a bit more flexibility in pricing negotiations; and, particularly for micro, small, and medium enterprises, can translate to meaningful cost savings, stronger profit margins, and improved price competitiveness,” she added.
