PSEi dips as Washington hikes tariffs on Philippine goods
Published Jul 10, 2025 04:58 pm
The Philippine Stock Exchange index (PSEi) closed lower on Thursday, July 10, after the United States (US) increased tariffs on goods from Manila.
The main index shed 41.14 points, or 0.63 percent, to settle at 6,463.20. Banks led the decline, while Services and Mining sectors saw strong gains.
Volume increased to 1.4 billion shares valued at P9.45 billion. Advancers still outnumbered decliners 107 to 85, with 55 issues unchanged.
“Philippine shares fell as investors remained on the sidelines due to renewed tariff threats, with markets declining further towards the close on Trump’s latest round of imposing new duties on imports,” said Luis Limlingan, Managing Director of Regina Capital Development Corporation.
The Philippines was among several countries impacted by the US' plan to impose a 20 percent tariff on exports, a notable increase from the 17 percent reciprocal rate announced in April.
Philstocks Financial Research Manager Japhet Tantiangco noted, “The PSEi closed down as investors took profits following a three-day rally.”
He added, “The local market’s sideways movement ended in negative territory, reflecting investors’ reaction to the US’ upward revision of its tariffs on Philippine exports.”
Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort stated that the PSEi corrected slightly lower after the higher tariff rates set by Trump. This could lead to slower demand for Philippine exports to the US, which accounted for 17 percent of the country's total exports in 2024.
Ricafort further commented, “The markets are still in a wait-and-see mode, anticipating whether Trump would be willing to compromise and settle for lower negotiated tariffs during the trade talks, given the TACO track record in recent months.”
He explained that “TACO” stands for “Trump Always Chickens Out,” referencing a pattern where Trump typically initiates with much higher tariffs as a negotiating tactic, then eventually settles for a significantly lower rate.
“Thus, there could be some volatility in the markets, but this is already partly priced in/expected, so it's not really as surprising anymore,” he noted.