By Justine Irish D. Tabile, Reporter
EXPORTERS said President Ferdinand R. Marcos, Jr. did not outline a government plan to deal with increased US tariffs in his fourth State of the Nation Address (SONA).
Foreign Buyers Association of the Philippines (FOBAP) President Robert M. Young said that exporters had been expecting the SONA to signal relief measures after US President Donald J. Trump announced a 19% tariff on Philippine goods, two percentage points higher than the initial rate announced in April.
“The whole thing to us is still opaque. When I say opaque, there’s no clarity,” he said in a phone interview, noting that government officials are giving off mixed signals regarding the conclusion of the reciprocal trade agreement.
“That’s why we expected him to say some comforting words,” he added.
He said exporters were hoping for forms of assistance that will “lessen their selling price.”
The Philippines and the US recently concluded talks on reciprocal tariffs, which are due to take effect on Aug. 1. The Philippine rate gives it little or no advantage over regional competitors like Indonesia (19%) or Vietnam (20%).
He expressed fears that the tariff will render Philippine goods unattractive, with consumers “instead picking commodities from Vietnam, Bangladesh, and Indonesia, among others,” he added.
He said there is some leeway to cushion the blow against exporters, such as tax reductions or holidays and subsidized customs and port fees.
“Right now, the sentiment is that nobody is pushing for this kind of remedy,” he added, noting the absence of “assurance from the government that we are here to assist you in any way.”
He said clear direction from the government will not only provide comfort to exporters but also to buyers.
“When they hear these kinds of comforting words, their trust level will also increase, which will be good for us, as that will push them to somehow continue (dealing with us),” he added.