A 10% US tariff for the Philippines will be a “good scenario,” though an even better one where the US charged some Philippine goods even lower rates would be the best case, the Department of Economy, Planning and Development (DEPDev) said.
“Right now, it’s a 10% rate for all. If that is retained, that will still be a good scenario for us. But if we can go back to the previous one where we were enjoying 5 to 6%, then of course that would be best,” Undersecretary for Policy and Planning Rosemarie G. Edillion told reporters Wednesday.
The Philippines had been assigned a 17% tariff on April 2, though the US has since suspended the “reciprocal tariff” pending negotiations. In the interim, a 10% rate applies to most trading partners.
On Monday, US President Donald J. Trump started sending tariff letters to 14 countries, with the new rates taking effect on Aug. 1.
Japan and South Korea were assigned tariffs of 25%. Also notified were Myanmar (40%), Laos (40%), Indonesia (32%), and Malaysia (25%)
Ms. Edillion said it is “difficult to ascertain” the new Philippine rate after mixed results for Asian trading partners in the initial round of tariff letters.
“We have determined that there will be a small net gain for us (at the 17% reciprocal tariff),” she said. We hope (the new rate) will still be favorable.”
Vietnam has since concluded a trade deal at a 20% tariff, making it one of two countries to conclude a trade deal with the US, the other one being the UK.
Palace Press Officer Clarissa A. Castro has described the Philippine position in tariff negotiations as “good.” — Aubrey Rose A. Inosante