An official of a local manufacturer of linens and beddings who is also into exporting said that the effects of the 19 percent tariff imposed by the United States on all US-bound Philippine exports are not yet felt for now, as it remains a waiting game whether the levy will be tweaked or not by US President Donald Trump.
The 19 percent tariff for Philippine exports to the US took effect on August 9, although the Department of Trade and Industry said they are still negotiating it with their US counterparts.
“It’s only coming into fruition now, and the effects are not yet fully realized. I think the effect of that tariff will only be realized over time, so we have to see how our international partners are also affected because of it, and we will see the ramifications of that,” said Chand Daryanani, president of Classic Characters Inc., makers of quality cotton linens and beddings under the brand Canadian.
He said the 19 percent tariff will (definitely) be a cost issue if it comes into play.
“But for now, everything is still fluid, and it is impossible to talk about it. But for now, we are prepared for it, and it is in our vision. But for now, we just have to be looking straight forward at the task at hand. For now, we don’t need to worry about it because we are unaffected. We have to move forward with our day-to-day operations,” Daryanani maintained.
Loving the Philippines
Classic Characters Inc. has two manufacturing plants in Parañaque City, producing infant wear, pet wear, textiles, and home beddings, which employ a thousand workforce, both externally and internally.
With the growing population of more than 110 million Filipinos, Daryanani said their heart remains with the Philippines as its prime and treasured market for the 66-year-old Classic Characters, Inc.
The pandemic has changed the export segment of the firm with Indian descent, with Daryanani saying that they had a big export wing before the pandemic.
“The pandemic had indeed changed us, making us focus on the domestic market. We are just slowly exporting again. We are exporting right now mostly in the Middle Eastern Area and the Southern Asian region,” he told reporters in a roundtable discussion on Wednesday.
He said for this year, they remain agile in attaining a double-digit growth.
“For now, we are still on target, and hopefully, we are still able to hit the goal by the end of the year. We did well last year with a single-digit growth. And we are not happy with that, that is why we keep on doing events to showcase our products to our valued clients,” he said.