‘90-day tariff pause to help recalibrate Philippines export strategy’

MANILA, Philippines — US President Donald Trump’s 90-day tariff pause should be used as a period to strengthen the export sector, according to business groups.

Foreign Buyers Association of the Philippines president Robert Young said the country could now take advantage of the 90-day pause by re-evaluating how to shape up and improve its global competitiveness.

Young said the government and private sector must join hands and focus on major exports such as agricultural products, computer parts, minerals, machineries and manufactured items such as garment and apparel.

According to Young, the Philippines should also explore other potential markets aside from the US.

Last year, the US accounted for 17 percent of the Philippines’ exports of goods.

Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said the 90-day pause is a time to look at the country’s different exports and how it could compete with other countries.

“So we should look at our costs and see how we can compete,” Ortiz-Luis said.

He said the government should also look at how it could provide support to the export sector as well as improve efficiency and ease of doing business.

“It is so hard to plan because of the uncertainties. We need to look at our policies and address red tape so that we can compete,” Ortiz-Luis said.

In his Truth social account, Trump said he authorized a 90-day pause and substantially lowered the reciprocal tariffs to 10 percent for most countries, including the Philippines.

The announcement was made after several countries asked to negotiate with the US on the tariffs.

The Philippines was initially slapped a 17-percent tariff by the US.

Trade Secretary Cristina Roque, who met with the Association of Southeast Asian Nations (ASEAN) economic ministers to discuss the recent imposition of tariffs, said that they see the 90-day suspension as a positive but temporary development.

“We recognized the necessity for a comprehensive impact assessment to fully understand the direct and indirect consequences of these tariffs on ASEAN member states. We recognized the need to formulate effective mitigation strategies, ensuring the protection of our member states’ interests, and maintaining our investors’ confidence,” Roque said.

Roque said a strong consensus emerged during the meeting on the importance of open and constructive dialogue with the US.

To strengthen the partnership with the US, she said ASEAN members would enhance existing cooperation platforms such as the Trade and Investment Facilitation Agreement or TIFA and the Expanded Economic Engagement or E3 Workplan.

ASEAN members will also explore new agreements to bolster supply chain resilience and expand market access.

“To this end, we reaffirm our commitment to finalizing the ASEAN Trade in Goods Agreement or ATIGA Upgrade and advancing negotiations for the ASEAN Digital Economy Framework Agreement, with both targeted for completion this year,” she said.

Given the evolving global economic landscape, she also cited the importance of diversifying trade and strengthening ties with other countries.

“The Philippines remains dedicated to ASEAN and we are ready to collaborate with fellow member states to cultivate stronger, more strategic global partnerships,” Roque said.

Meanwhile, the Department of Agriculture (DA) continues to find ways to expand the markers for Philippine agriculture exports amid the higher tariff slapped by the Trump administration.

While the government welcomes the 90-day reprieve, DA Assistant Secretary and spokesman Arnel de Mesa said Agriculture Secretary Francisco Tiu Laurel Jr. is being proactive by pitching Philippine agriculture exports to other countries.

“That’s why the Secretary is very active in promoting agricultural commodities. He has been attending various fairs. We recently visited Japan, now South Korea to promote agricultural commodities. The international trades are very important for agriculture to address present concerns,” De Mesa said.

De Mesa added that the country’s total trade to the US reached almost $21 billion.

“We import at least $8.82 billion and export worth $12.13 billion, in favor of us of $3.31 billion. For agri-fishery, we import $3.6 billion and export at least $1.4 billion, meaning, we have a deficit in terms of agriculture,” De Mesa said.

He added that the DA is looking for alternative areas where the country could export more agricultural products.

“The Philippines can easily adjust. If there are problems, we can easily find alternative ways,” he said.