Following United States President Donald Trump’s pronouncement that he would temporarily pause for 90 days the imposition of reciprocal tariffs on several nations, excluding China, the Philippine government said it would meet with US Trade Representative (USTR) Jamieson Greer to negotiate the 17 percent tariffs slapped on US-bound Philippine products.
“We have reached out to the USTR who is responsible for all these trade tariffs. We’ve reached out to the USTR and communicated our desire to engage in a meeting or dialogue and he has positively responded so I will be scheduling a trip to the US to meet with him the USTR soon,” said Special Assistant to the President (SAP) for Investment and Economic Affairs, Secretary Frederick Go in a Palace briefing on Thursday.
The Palace economic team has met to discuss possible ways forward, what steps to take next, and what possible actions the government should take regarding these reciprocal tariffs.
Go said four points were raised during the meeting. He said, “The ASEAN Trade Ministers have gotten together and have decided to communicate with the US I three main points — first is to reaffirm the long enduring and strong relationship with the US; second, to express concern over these unilateral tariffs that are being imposed on the ASEAN; and third to engage in a frank and constructive dialogue with the US to reaffirm their readiness in ASEAN to work together, to explore mutually acceptable solutions on issues of common interest.”
Go expressed his view that the 17 percent tariff on the Philippines would have minimal effect on the country’s gross domestic product (GDP).
He maintains that the Philippines is on the advantage side as the country has the second-lowest imposed tariffs among ASEAN peers.
“If you analyze this, the Philippines has a slight advantage. However, we are aware that any tariff, any additional tariffs still affect certain industries in the Philippines, which is why we think that there’s a slight effect. Based on the NEDA estimates, the possible effect is 0.1 percent of our GDP in the next two years,” he said.
As a key member of the economic team, SAP Go underlined that the Philippines should engage with exporters to discuss with them what possible measures the government can adopt to assist them in the current situation.
“Secondly, we have to monitor what our neighboring countries are doing, their reactions and requests to the US,” he said.
Go maintained that every country in the ASEAN affected by the tariff imposition will continue with their bilateral negotiations with the US and concurrently conduct regional discussions with the US.
“The keywords are cooperation, not retaliation. And of course, lastly, because this is an ASEAN meeting after all, the most important conclusion is as a group to discuss ways to strengthen further and boost intra-ASEAN trade and investment within the region,” he said.
Meanwhile, Trade Secretary Cristina Roque said that on Thursday, she had a virtual meeting with fellow ASEAN Economic Ministers to forge a unified regional response to the 90-day suspension of reciprocal tariffs.
“Our session was aimed at forging a unified regional response to the 90-day suspension of reciprocal tariffs, which we acknowledged as a positive, albeit temporary, development. We recognized the necessity for a comprehensive impact assessment to fully understand the direct and indirect consequences of these tariffs on ASEAN member states. We recognized the need to formulate effective mitigation strategies, ensuring the protection of our member states’ interests, and maintaining our investors’ confidence,” according to Roque.
The Trade chief stated that strong consensus emerged among the ASEAN member economies on the importance of open and constructive dialogue with the United States. This relationship was elevated to a Comprehensive Strategic Partnership in 2022, transcending mere trade and encompassing significant foreign direct investment. It is a key pillar in ASEAN’s economic framework.