Pcci Urges Gov’T To Lower Us Import Tariffs

The Philippine Chamber of Commerce and Industry (PCCI) is urging the government to lower tariffs on US imports and pursue a reciprocal trade agreement. This would mitigate the adverse economic effects of President Donald Trump’s recently announced 17% tariffs on Philippine exports.

The PCCI’s call aligns with Vietnam’s recent initiative to cut tariffs on US products to zero in exchange for similar concessions, highlighting a regional approach to addressing trade imbalances.

On the sidelines of the April 8 PCCI general membership meeting, PCCI chair George Barcelon told local media: “That is something that I think we should consider, the government should consider, in consultation with the private sector.”

Barcelon said a similar move made by Vietnam would benefit the country, as the Philippines’ electronics and agriculture exports are expected to be hit hard by Trump’s 17% tariff.

The PCCI said it was waiting for the government’s final response and will monitor how neighboring countries proceed before determining its next steps.

The country’s largest business organization warned of a potential economic fallout from US tariffs that will make Philippine goods more expensive. This would dampen demand and eventually hurt corporate earnings.

While the 17% tariff is among the lowest compared to other Association of Southeast Asian Nations member-states that have a trade surplus with the US, the Chamber said uncertainties over which specific  export products will be affected leaves local industries vulnerable to potential disruptions.

Southeast Asian countries were slapped among the highest tariffs set to take effect this week.

Cambodia was slapped with 49. It was followed by Laos, 48%; Vietnam, 46%; Thailand, 36%; Indonesia, 32%; Malaysia, 24%; and Brunei, 24%.

Only Singapore has a lower tariff than the Philippines at 10%.

“The United States has yet to announce the exact coverage but we remain vigilant as such tariffs typically target specific categories of goods such as food and agri products and electronics, which are our major exports,” said the PCCI in a statement, adding it was wary of the potential impact the actions other countries may take in response to the US’s reciprocal tariffs.

“Retaliatory measures can disrupt global supply chains, increase costs and create uncertainty for businesses and consumers, bringing about a broad negative effect on economic growth,” the PCCI said.

It added that the impact of the tariffs could be most challenging for the Philippines, given its remittance- and consumer-driven economy, warning further that the ripple effect of rising costs could hit small businesses the hardest, particularly those in sectors like agriculture and food processing, which are already operating on tight margins.

READ: More supply chain disruptions to be expected with new tariff regime

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