MANILA: Philippine exports to America will be slapped with 17 per cent tariff starting April 9 as part of the sweeping “Liberation Day” tariff policy announced by United States President Donald Trump.
A table posted by Trump on Truth Social announced the 17-per cent tariff, which is still lower than the 34 per cent imposition on goods coming to the country from America.
An annex to a Trump statement issued by the White House, however, indicated a slightly higher tariff rate of 18 per cent on the Philippines.
Higher tariffs are likewise imposed on most of key South-East Asian neighbours: Vietnam at 46 per cent, Thailand at 36 per cent, Indonesia at 32 per cent and Malaysia at 24 per cent and Cambodia at 49 per cent.
Only Singapore will be slapped with just 10-per cent tariff — the baseline figure given by Trump, who cited an urgent need to “strengthen the international economic position of the United States and protect American workers.”
Trump announced “individualised” reciprocal higher tariff on countries with which the US has the largest trade deficits. All other countries will be subjected to the original 10-per cent tariff baseline effective April 5.
“Large and persistent annual US goods trade deficits have led to the hollowing out of our manufacturing base; resulted in a lack of incentive to increase advanced domestic manufacturing capacity; undermined critical supply chains; and rendered our defence-industrial base dependent on foreign adversaries,” Trump said.
Trump invoked his authority under the International Emergency Economic Powers Act of 1977 to “address the national emergency posed by the large and persistent trade deficit.”
Based on data from the Office of the United States Trade Representative (USTR), the US incurred a merchandise trade deficit with the Philippines amounting to US$4.9 billion in 2024, up by 21.8 per cent from the previous year.
Bilateral trade between the two countries totalled $23.5 billion in 2024. US goods exports to the Philippines amounted to $9.3 billion, up 0.4 per cent. On the other hand, US imports from Philippines totalled $14.2 billion in 2024, up 6.9 per cent.
According to the USTR, which cited the latest available data as of 2022, the Philippines’ average Most-Favoured-Nation (MFN) applied tariff rate was 6.1 per cent. The Philippines’ average MFN applied tariff rate was 9.8 per cent for agricultural products and 5.5 per cent for non-agricultural products in 2022. - Philippine Daily Inquirer/ANN
