By Justine Irish D. Tabile, Reporter
PHILIPPINE EXPORTERS remain cautious in the face of the uncertainty posed by the US tariff regime, but are hoping that US President Donald J. Trump views the Philippines as a “friendly country.”
Foreign Buyers Association of the Philippines (FOBAP) President Robert M. Young said exporters still have “no clear information” about what tariffs will be assigned by Washington once the pause on the reciprocal tariff ends next week.
All exporters have to go on is that US Treasury Secretary Scott Bessent’s description of negotiations with the Philippines as having gone well, he said.
“It is most likely that we will be left without a choice but to be reverted to the (17%) April 2nd tariff rate or stay at 10%, depending on whether Trump deems the Philippines a friendly country negotiating in good faith,” Mr. Young told BusinessWorld on Monday.
“We are all in the dark indeed … But FOBAP’s prayer is to have the most minimum tariff increase in order to (boost) our still struggling economy,” he added.
On April 2, Mr. Trump announced tariffs on most of its trading partners, with the Philippines being assigned the second-lowest rate in Southeast Asia at 17%. This has since been put on hold for 90 days to give time for negotiations. The pause ends on July 9 while trade delegations negotiate new deals with Washington.
In a Bloomberg report, Mr. Bessent was quoted as saying that Mr. Trump has threatened to impose new duties above the provisional 10% baseline rate for most trading partners, mostly smaller countries that do not reach deals by next Wednesday.
However, he said that about 20 countries “could continue negotiating but would see their tariff rates reverted to the higher April 2 rate or stay at 10% if they are deemed to be negotiating in good faith.”
In early May, a Philippine delegation led by Secretary Frederick D. Go, the Special Assistant to the President for Investment and Economic Affairs, and Trade Secretary Ma. Cristina A. Roque met with the US Trade Representative (USTR) to negotiate lower tariffs.
Following the meeting, the government created a technical working group to continue talks with the USTR. It was led by Trade Undersecretary Allan B. Gepty.
Asked to comment, Mr. Gepty said that negotiations with US counterparts are “still in progress.”