While many seem to be fixated on the testimonies of the impeachment hearings, major developments such as the increased US tariff on the Philippines and climate incidents threaten to undercut our economic stability and growth.

The first is that additional tarriffs may weaken export growth. For context, we still export more to the US than we import. According to the United States Trade Representative’s website, in 2025 the US imported 17.8 billion US dollars worth of goods from the Philippines, while we only imported 9.1 billion US dollars worth of goods, leaving a substantial gap that increased from 2024. While our DTI reports that major export items like coconuts and electronics products are unaffected by this sudden tariff increase, it will be wise for us and our exporters to watch how these tariff hikes are also affecting the chances of our competing countries for the same export volume to the US, as we are not the only country selling similar products.

We know that higher import tariffs raise revenues for American state coffers, yet tend to weaken demand and sometimes force local buyers in the US to seek cheaper, in-country alternatives to products we export to them. The US government claims that the additional tariffs are due to a failure to enforce legal provisions against child labor. This makes the tariff hike intense and quick. The impact of sudden tariff hikes, like any change in rules does is to create more uncertainty for business and trade. Mitigating this impact will require eagle-eyed monitoring of these and future shifts on us and our competitors.

In the long term, we will need to broaden our exports and increase the quality of goods or lower the cost delivered to offset any additional costs incurred by American importers of our goods. For the importer, if it's worth importing, then it's worth paying tariffs for. Furthermore, how the proposed Pax Silica initiative in Central Luzon factors into the balance of trade between the United States and us is worth watching.

The second consists of climate impacts from adverse weather. In the last year saw flooding incidents in several cities, prompting intense online discussions that mostly played up the usual blame game rather than helped facilitate real long-term solutions.

Curiously, while some areas in the Philippines were flooded, the water levels in many dams in Luzon fell below proper levels to sustain water supply. This means there was not enough rain in those parts.

What this tells us is that, like tariffs, weather has become increasingly unpredictable, wreaking havoc on business expansion plans that ought to create stable jobs for the new batch of graduates in their impressive togas. What we all must understand is that laws like Republic Act 10121, passed to mitigate disasters, are not merely meant to stock up on relief goods. They require preparation and measures to lessen the impact of such natural events to prevent the loss of life and increase the capability of local residents and businesses to get back on the track of life after the disaster.

To address these more uncertain weather impacts, we cannot go on with mere buck-passing and blame-gaming. Long-term solutions will be necessary, focusing on collaboration among national agencies, LGUs, and local community groups to monitor the implementation of previously funded and implemented measures, as well as new ones intended to deliver long-term outcomes. The continued strength of the local economy and community depends on it.