MAP calls 17% import tariff a looming economic crisis

The Management Association of the Philippines expressed deep concerns about the imposition of a 17 percent tariff on US-bound Philippine imports announced by US President Donald Trump.

This comes as economic managers, including Special Assistant to the President for Investment and Economic Affairs, Secretary Frederick Go, view the reciprocal tariffs as beneficial to the country rather than a huge burden on Philippine importers of goods to the US.

“While our country at this time is seen as not as negatively affected as others, with the global economy being an integrated ecosystem, we cannot discount the possibility that as other countries are affected, it may prosper into a contagion that will eventually affect us,” the group said in a statement on Friday.

“This is a reality that will spread across many countries and will clearly have varied economic impacts on each nation,” the MAP statement, signed by its President Alfredo Panlilio, maintained.

To address this, the group urgently requested appropriate government agencies, namely the Department of Trade and Industry (DTI), the Department of Foreign Affairs (DFA), the National Security Council, the Department of Finance (DOF), the National Economic and Development Authority (NEDA), the Philippine Economic Zone Authority (PEZA), the Anti-Red Tape Authority (ARTA), and the Department of Labor and Employment (DOLE), to consider the impact of the new global order on the Philippines’ economic security.

“As what many countries have already done in anticipation of these developments, we recommend the formation of an ECONOMIC SECURITY COUNCIL under the Office of the President, composed of the above-named government agencies together with appropriate private sector and industry representatives. Many foreign governments have acknowledged the value and effectiveness of having their respective private sector and industry as key partners in addressing these new challenges,” the MAP suggestion stated.

Furthermore, the notable business group stressed that the Economic Security Council should be headed by and composed of individuals with extensive diplomatic, economic, and industry expertise.

“The council’s main tasks would be to compile data and information, analyze their correlation and impact on our economy, and recommend risk-mitigating measures for the affected industries. It can also identify opportunities and alternative markets that these developments will provide for our own economy and businesses. It can provide important scenario modeling analysis, which will help the President and the Executive Branch in developing strategies, and in negotiations with other governments in dealing with the new realities of international trade,” according to the group.