Trump’s return to power carries a high risk of imposing 20 percent tariffs on non-China countries, which could negatively impact the Philippine economy, a Cabinet official said.
Imposing tariffs of 20 percent on non-China countries and 60 percent on China could affect the global economy, “and that’s what will worry us,” National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan told reporters when asked about the potential impact of Donald Trump’s comeback.
“Of course, prices will be higher in the U.S., and that will put pressure on inflation and the purchasing power of the population,” Balisacan pointed out.
Balisacan, however, stated that the country can adapt to any U.S. administration’s policies and “can work with any government.”
He noted that the country’s growing relationships with the U.S. and other nations may lead to positive developments.
Continued internal reforms, he added, will help the country adapt to global economic shifts and manage potential risks.
Balisacan also assured that the Philippines has already pursued export market diversification through new trade agreements with countries such as Korea, the UAE, and the EU to reduce economic vulnerability.
“We have been pushing and have been more aggressive in opening up other channels, like our free trade agreements with other countries,” he said.
The NEDA chief added that the goal is to establish more free trade agreements (FTAs), both bilateral and multilateral, to create new opportunities and diversify both exports and imports.
Recently, the economic team’s visit to London sparked strong interest from British investors in Philippine opportunities, with plans to continue discussions, according to Balisacan.
In line with this, high-level discussions are ongoing between the Philippine government, international counterparts, and businesses to drive economic diversification.
“I can assure you that we are very mindful of the need to diversify our economy,” Balisacan said.
This move is essential to cushion the impact of sudden protectionist measures from major partners, which could harm long-term efficiency and create further issues.
Ideally, the U.S. would avoid such isolationist policies, as they may ultimately prove counterproductive, he added.