Manila: Senate President Francis Escudero on Thursday proposed a series of strategic responses to soften the blow of the new 17 percent tariff imposed by the United States on Philippine exports, urging the government to act swiftly to protect the country's economic interests.

According to Philippines News Agency, during the Kapihan sa Senado forum, Escudero called on the country's economic managers to consider immediate amendments to the tariff and customs code and explore options such as currency devaluation and market diversification. "The President has the authority to amend our tariff and customs code while Congress is in recess. This power must be exercised to respond promptly and decisively to this challenge," he said.

Escudero warned that failure to act could weaken one of the Philippines' strongest trade relationships. The United States accounts for nearly 17 percent of the country's exports, amounting to over USD1 billion in January 2025 alone. "We're looking at a trade surplus that could easily be disrupted," Escudero said.

He added that while retaliation through counter-tariffs-as done by other countries-is an option, it must be weighed carefully since this has global consequences and drives up the cost of goods. Beyond policy tools, Escudero suggested long-term structural responses, including identifying alternative export markets to reduce dependence on the US and currency devaluation to keep exports competitive despite higher tariffs.

Escudero, on the other hand, noted that despite the looming threat, the Philippines may be less exposed than others due to its services-based export economy. "We're not as heavily reliant on manufactured goods as countries like Japan or Vietnam," he noted.