The Philippine Exporters Confederation Inc. (PhilExport) expressed confidence that Philippine exports to the US would remain strong despite the trade tensions between the US and china.
PhilExport president Sergio Ortiz-Luis Jr. also called for a de-escalation of geopolitical tensions between the Philippines and China.
“We hope [President Donald] Trump can lower geopolitics in the Philippines so we can recover the market we lost with our neighbors and China. Not only market but tourism and investment were also affected by geopolitics,” said PhilExport president Sergio Ortiz-Luis Jr., as he stressed the need for reducing tensions to help recover lost markets.
Ortiz-Luis said while the US recently imposed a 10-percent tariff on Chinese imports, this would have little impact on the Philippines.
“I don’t see the 10-percent tariff imposed on China affecting the Philippines because Chinese prices are so low. Even adding the 10 percent will not stop the US from buying from China,” he said.
He expressed confidence that Philippine exports to the US, the country’s largest export market, would remain strong despite the trade tensions between the two global economic powers.
Data from the Philippine Statistics Authority show that the US was the largest export market of the Philippines in December 2024, accounting for $94 million, or 16.8 percent, of the country’s total export value that month.
Other major export markets for the Philippines are Japan, China, Hong Kong and Singapore.
The trade war escalated when Trump imposed broad tariffs on China, effective Feb. 4, 2025.
Trump also threatened to impose tariffs on other major trading partners, including Canada and Mexico, but recently agreed to delay the imposition of a 25-percent tariff on those countries for 30 days.
China, in response to the US tariffs, announced retaliatory measures, including a 15-percent tariff on coal and liquefied natural gas, a 10-percent tariff on crude oil and tariffs on agricultural machinery.
“It doesn’t look like he’s [Trump] really serious because they know it would be harder if China engages in a trade war with the US,” Ortiz-Luis said, pointing out the complexity of a full-scale trade war between the two largest economies in the world.
Economists warned that the ongoing trade dispute, if not defused, could lead to higher prices for a wide range of goods, including cars, steel, food, and alcohol, potentially affecting consumers worldwide.
