THE US tariff on Philippine goods is likely to stay at the 10% “baseline” level after the Trump administration’s 90-day pause ends in July.
In its report released June 16, Nomura Global Markets Research said the current 10% baseline tariff rate may continue in countries such as Singapore and the Philippines.
It expects the US to charge Vietnam 24% and Thailand 20% tariffs, down from the original “reciprocal tariffs” announced on April 2 of 46% and 36%.
The April 2 “Liberation Day” tariffs triggered negotiations by trading partners to bring down their final rates.
In April, the Philippines was assigned a 17% tariff rate, the second lowest in Southeast Asia after Singapore, which was grated the baseline rate of 10%.
On average, Nomura said tariffs for the Association of Southeast Asian Nations — 6 countries would likely average 15.5%.
Last week, the US and China agreed on a trade framework featuring the reduction of China tariffs to 30% from 145%.
Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc. said via Viber that any improved trade terms will come with commitments to allow US goods in also at reduced tariffs, “as correcting the US trade deficit has been the main rationale of Trump’s tariffs.”
Trade Secretary Maria Cristina A. Roque, Secretary Frederick D. Go of the Office of the Special Assistant to the President for Investment and Economic Affairs, and Philippine Ambassador to the US Jose Manuel D. Romualdez met with US Trade Representative Jamieson Greer in Washington on May 2 to kick off tariff negotiations. — Aubrey Rose A. Inosante