‘US tariffs on Chinese imports unlikely to impact Philippines trade’

MANILA, Philippines — The US’ imposition of a 10-percent tariff on Chinese imports is unlikely to affect the Philippines, with Philippine exports to the US expected to remain strong, according to the Philippine Exporters Confederation Inc. (Philexport).

“I don’t see the 10 percent (tariff) imposed on China having an effect on the Philippines because Chinese prices are so low. Even adding the 10 percent will not stop the US from buying from China,” Philexport president Sergio Ortiz-Luis Jr. said in an interview with .

Some of the Philippines’ exports have components sourced from China.

The 10-percent tariff imposed by the US on Chinese imports took effect early this month.

In response, China announced retaliatory measures, including a 15-percent tariff on certain types of coal and liquefied natural gas and a 10-percent tariff on crude oil, agricultural machinery, as well as large-displacement cars.

Despite the trade war between the US and China, Ortiz-Luis said he expects Philippine exports to the US to remain robust.

Data from the Philippine Statistics Authority showed that the US was the Philippines’ top export market last year, accounting for $12.12 billion or a 16.6-percent share of the country’s total exports.

In December last year, the US also accounted for the highest value of Philippine exports amounting to $947.77 million or a share of 16.8 percent of the country’s total exports.

Ortiz-Luis said what Philexport hopes to see is cooling geopolitical tensions between the Philippines and China.

He said the group is hopeful that US President Donald Trump could ease the geopolitical tensions in the Philippines as such have affected trade, tourism and investment.

“We hope Trump can ease geopolitics in the Philippines so we can recover the market we lost with our neighbors and China,” he said.

Last year, China accounted for 12.9 percent or $9.44 billion of Philippine exports.

In December last year, China was the third largest destination of Philippine exports, accounting for $725.76 million or 12.8 percent of the total.