PHILIPPINE PORTS will not feel the worst of the US tariff disruptions because of healthy intra-regional trade, according to S&P Global Ratings.
“Most of the ports in Asia actually are quite diversified. So yes, trade with the US is a big component, but that is not the only counterpart to deal with. There is a lot of intra-regional trade,” S&P Global Ratings Managing Director Christopher Yip said on the Money Talks with Cathy Yang program on One News on Tuesday.
According to Mr. Yip, it is too early to assess the impact of the tariffs imposed by US President Donald J. Trump as most shipping lines are still adjusting to these changes.
“Everyone is looking at the uncertainty… the shipping lines are basically still adjusting to that. So some ships are still continuing, the routes have been planned. It will take time for a new equilibrium to be established,” he said.
“It really depends on the negotiations between China and the US. And also what will happen to the 90-day pause for the tariffs for the rest of the countries,” Mr. Yip said.
Mr. Trump has imposed a system of reciprocal tariffs, initially set at about half the tariffs charged by trading partners on incoming US goods. The markets deemed most liberal in accepting US goods have been assigned a “baseline” tariff of 10%.
The reciprocal tariffs imposed in early April have since been suspended for 90 days, with most trading partners being charged the 10% “baseline” tariff.
The Philippines, which had been assigned a 17% baseline tariff, dispatched a negotiating team to Washington last week to seek more favorable terms.
Philippine Ports Authority General Manager Jay Daniel R. Santiago said last week that it is expecting little to no impact on the shipping industry from the US tariffs.
International Container Terminal Services, Inc. said its global operations are unlikely to be affected by the new US tariffs, though its Mexico unit might be affected disproportionately. — Ashley Erika O. Jose