EXPORTS to the US are expected to remain robust, unaffected by a possible US-China trade war, the Philippine Exporters Confederation, Inc. (Philexport) said.
“I don’t see the 10% imposed on China having an effect on the Philippines because Chinese prices are low. Even adding the 10% will not stop the US from buying from China,” Philexport President Sergio Ortiz-Luis, Jr. said in a statement over the weekend.
Adding that he expects the “Philippine exports to the US, the country’s biggest export market, to remain robust, largely unaffected by the trade war between the two powerhouse economies.”
The US was the Philippines’ top export destination last year, accounting for $12.12 billion, or 16.6% of total exports. It was followed by Japan, China, Hong Kong, and Singapore.
In December, the Philippines exported $94 million worth of goods to the US, or 16.8% of total exports for the month.
“US President Donald J. Trump imposed broad tariffs on China that took effect on Feb. 4, while his tariff threats hang over other major trading partners, including Canada and Mexico,” Philexport said.
However, Mr. Trump has agreed to hold off levying 25% tariffs on Canada and Mexico for 30 days, while China responded with retaliatory tariffs on American products, including 15% on coal and liquefied natural gas and 10% on crude oil and agricultural machinery.
“It doesn’t look like he’s really serious because they know it would be harder if China engages in a trade war with the US,” said Mr. Ortiz-Luis.
He said Philexport is more concerned with Mr. Trump helping ease geopolitical tensions between the Philippines and China.
“We hope Trump can lower the temperature so we can recover the market we lost with our neighbors and China. Also, tourism and investment were also affected by geopolitics,” he added. — Justine Irish D. Tabile
