The ongoing tariff war between China and the United States has disrupted global trade flows, but it also presents an economic opportunity for the Philippines, according to Dr. Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development (ACERD).
In an interview with Philippine Dragon News Network on May 7, 2025, Reyes said the tariff war causes trade problems between China and the U.S., but is a big opportunity for the Philippines.
On May 12, both countries agreed to lower tariffs.
The U.S. reduced its tariff on Chinese goods to 34 percent and paused 24 percent of that tariff for 90 days.
In return, China cut its tariff on U.S. goods from 34 percent to 10 percent and also paused 24 percent of the original tariff for 90 days.
Reyes said the 17 percent tariff between the Philippines and the U.S. is low compared to other nearby countries—only Singapore has a lower rate at 10 percent.
Because of the tariff war, China and the U.S. need new suppliers and markets, he said.
This gives the Philippines a “window of opportunity” to receive manufacturing transfers from China.
Reyes said the Philippines could attract Chinese investors, especially in areas like agricultural technology, manufacturing, electric vehicles, optoelectronics, electronics, shoes, garments, accessories, toys, semiconductors, power supply and telecom equipment.
To take full advantage of the shift, Reyes urged the Philippine government to act swiftly and strategically.
He said the Philippine government should treat foreign investors well, avoid causing problems for them, reduce corruption and create a friendly environment to welcome manufacturing transfers from China.
