THE Philippines stands to lose up to P6 billion in annual trade revenues after President Ferdinand Marcos Jr. agreed to grant a zero-tariff concession on select American imports during his meeting with US President Donald Trump in Washington last week.
Finance Secretary Ralph Recto said the government initially calculated “something like P3 billion to 6 billion” a year in losses but noted that this has not been finalized yet.
“Assuming ibigay mo what we discussed like cars, wheat, pharmaceutical, soybeans… Depende kung lahat ‘yan ah. Remember, there’s nothing final yet,” he said at the sidelines of the 2025 post-SONA forum.
Recto said the deal does not necessarily put the Philippines at a disadvantage, since the products that were given zero tariffs do not compete with local industries and are also beneficial to consumers.
“Halimbawa, ayaw ba natin magmura ang pandesal? Walang taripa na ‘yung wheat e di bababa ang (presyo ng) pandesal. Pabor sa atin ‘yun e. Halimbawa, pharmaceutical, gamot — kapag binawasan mo ‘yung taripa, magmumura ang gamot,” he added.
The finance chief said the 19 percent tariff imposed by the US on the Philippines is also one of the lowest rates in the world.
“Trump said the minimum tariff globally will be 15 (percent) so tayo 19 (percent)… Siyempre, tatamaan din ng konti ‘yung exports natin initially. But as a whole, we have a better deal than many other countries,” he said.
Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. earlier said the effects of the 19 percent United States tariffs on some Philippine products may only result in “modest” effects on the Philippine economy.
At the sidelines of the Project Open Finance x PERA in Manila, Remolona said only certain goods are affected and the Philippines in general does not rely heavily on US trade to have a significant impact on the overall economy. (ABS-CBN News)
