Manila: Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick Go is optimistic that Manila and Washington D.C. will arrive at mutually beneficial trade arrangements amid the new tariff policy of the US government. This optimism comes as Go announced his upcoming trip to the US for a tariff dialogue, although the date for the trip has yet to be disclosed.
According to Philippines News Agency, the Department of Trade and Industry (DTI) shared that Go and Trade Secretary Ma. Cristina Roque recently met with exporters, producers, manufacturers, consolidators, industry associations, and government officials. The meeting aimed to assess the potential impacts of the 17-percent levy for the Philippines under the US reciprocal tariffs and to address stakeholders' concerns. Currently, the policy on reciprocal tariffs has been postponed for 90 days, with US President Donald Trump announcing a universal rate of 10 percent on April 9.
'The consultative process has enhanced mutual understanding and alignment on shared goals,' Roque stated, reaffirming DTI's commitment to ongoing dialogue with stakeholders. Roque emphasized the importance of considering stakeholders' interests to secure the best possible outcomes for the Philippines in its trade relations with the US.
Meanwhile, the Philippine Institute of Development Studies (PIDS) has released a discussion paper on US tariffs, authored by former DTI Undersecretary Rafaelita Aldaba. The paper highlights the need for the Philippines to align its trade and industrial strategy to secure its position in shifting global supply chains amid the US tariff policy. Aldaba pointed out that while the Philippines currently benefits from relatively low reciprocal tariffs compared to regional competitors, its narrow export base and limited industrial capacity hinder the country from fully capitalizing on trade diversion opportunities created by shifting US trade policies.
Aldaba warned that without swift and proactive policy implementation, the Philippines risks being a passive beneficiary rather than a strategic player in ongoing global trade realignments. The PIDS paper recommends several strategies, including shifting from low-value assembly to high-tech sectors such as artificial intelligence hardware, medical devices, and semiconductors. It also suggests offering targeted subsidies, performance-based incentives, and streamlined approval processes for firms relocating from high-tariff jurisdictions. Additionally, the paper advocates for digitizing customs and logistics systems to boost manufacturing efficiency and modernizing economic zones with green energy, 5G connectivity, and smart logistics.
