Department of Trade and Industry (DTI) Secretary Cristina Roque said the Philippines is “business as usual” as it awaits potential changes once the 90-day temporary suspension on reciprocal tariffs imposed by the United States (US) on all foreign-source goods is lifted.
US President Donald Trump ordered a 10-percent baseline tariff on all imports into America as a boon to its domestic manufacturing industry during his so-called “Liberation Day” on April 2.
Trump imposed a higher reciprocal tariff on countries with which America has a trade deficit, with the Philippines slapped with a 17-percent tariff.
He later moved to pause these higher tariffs on most countries until July, only keeping the initial 10-percent tariffs.
With three months left on the negotiating table, several countries are raring to negotiate for a beneficial agreement with the US.
Enter the Philippines, which Roque said is planning to meet with the US Department of Commerce before the 90-day deadline.
“It’s business as usual. We’re just really hoping to meet or scheduled to meet before the 90 days is over,” Roque told reporters on Tuesday, April 15.
“Para at least we can already discuss ano ba talaga ang magiging tariff rate ng Philippines,” she explained.
(So at least we can already discuss the Philippines’ actual tariff rate.)
When Trump first announced the reciprocal tariffs, members of the Marcos cabinet expressed optimism, given that the country received one of the lowest tariff rates in the Association of Southeast Asian Nations (ASEAN).
According to the list provided by the White House, Cambodia was the hardest-hit country in the 10-member bloc, facing a 49-percent tariff.
The Philippines’ close trade competitors with the US also saw higher tariffs, such as Vietnam (46 percent), Thailand (36 percent), Indonesia (32 percent), and Malaysia (24 percent).
Only Singapore, which has a trade surplus with the US, was the sole ASEAN member to meet the 10-percent baseline tariff.
If the Philippines retains the original 17-percent tariff, local manufacturing will greatly benefit, as US companies may look to the country for better deals.
“If 17 percent and our ASEAN neighbors are higher than us, of course that’s advantageous for us,” the DTI chief said.
“But we don’t know what will happen after 90 days so it’s hard to speculate until we got to talk to my counterpart there in the US,” she continued.
Roque said her US counterpart already “acknowledged” the request for the meeting, noting that she is just waiting for the schedule.
The US Commerce Department, headed by Secretary Howard Lutnick, is currently investigating imports of semiconductor technology.
As part of the probe, the department will look into additional trade measures such as tariffs—supposedly to gauge whether it’s vital in ensuring America’s national security.
Based on the latest data from the Philippine Statistics Authority (PSA), exports to the US comprised the highest export value amounting to $986.84 million, or a share of 15.8 percent to total exports in February.
Electronic products, including semiconductors, was the country’s top export commodity in the same month, reaching $3.52 billion or 56.3 percent of the country’s total exports.
Sought for comment, Roque said the government will always try to negotiate what’s best for the Philippines.
“For the semiconductor, it’s still business as usual because yung iba may orders na sila (some already have orders) and they’re already being shipped,” the Secretary said.
“So it’s still business as usual for now until the 90 days is over,” she added.