The US Court of International Trade’s ruling that struck down President Donald Trump’s reciprocal tariff order is reverberating across global trade circles, and the Philippines should brace for its fallout while addressing its own competitiveness issues, according to Foreign Buyers Association of the Philippines (FOBAP) president Robert Young.
“This is very good news in principle because what Trump did was dictatorial and unfair. But the harm is already done,” Young said, reacting to reports of the court’s decision to block the controversial trade policy.
He said that while the ruling is a win for global trade advocates, it ushers in a period of uncertainty.
“We don’t know who will prevail—Trump or the court. Until then, everything is in limbo. The supply chain is already affected, and the whole business world is holding its breath,” said Young.
The court’s decision follows widespread opposition to Trump’s reciprocal tariff strategy, which drew legal challenges from various industry groups.
Young said FOBAP had been in talks with US apparel and garment associations who anticipated legal action.
“From the start, they said they would question the legality of the order. It was defended under presidential emergency powers, but it wasn’t about drugs or national security—it was just about business competition. That’s why the court has now spoken,” he said.
Young warned that the damage had been done, and major global businesses already restructured or rescheduled operations.
He said that for the Philippines, the effects are less about direct trade impacts and more about collateral damage.
“When elephants fight, the ants die. We’re not a major player like Japan or the EU, but we are caught in the crossfire. Our emissaries have been going back and forth, wasting time and energy,” he said.
Young urged local exporters and manufacturers to refocus on fundamentals by improving pricing, delivery speed and addressing long-standing structural issues such as high power costs, expensive labor, poor infrastructure and logistical bottlenecks.
He warned that the Philippines is already one of the most expensive countries in ASEAN, and global competition would remain difficult unless these challenges are resolved.
Young also cautioned against lobbying for tariff cuts without offering competitive products. “Do we have the right goods? Can we compete? That’s the real question. It’s not about appeals—it’s about preparation and performance,” he said.
Meanwhile, Makati Business Club (MBC) executive director Rafael Ongpin echoed a tone of cautious optimism.
“The Makati Business Club welcomes this development, which may restore some order to global trade and reduce the risk of a broader economic downturn. But we believe the matter is far from over,” he said.
While ASEAN as a bloc wisely stayed restrained, Young said the ruling should serve as a wake-up call.
“This is our chance to regroup and strengthen our trade capabilities. Let’s stop relying on special treatment and fix our fundamentals. Only then can we weather the global disruption triggered by political decisions like these,” he said.
