The Market Monitor Minding the Nation's Business
Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go will travel to the United States to negotiate the 17-percent tariff imposed by the Trump administration on certain Philippine goods entering the American market.
Speaking to Palace reporters, Go shared that the Philippine government had received a “positive response” from the US Trade Representative (USTR) regarding its request for a dialogue to address the new tariff.
“We have reached out to the USTR and we have communicated with them our desire to engage in a meeting or dialogue with them and they have positively responded. So, I will be scheduling a trip to the United States to meet with the USTR soon,” Go said.
Go added that President Ferdinand R. Marcos Jr. met with the country’s economic managers on Tuesday to discuss the US’ reciprocal tariffs and their impact on exports from countries affected by the new tariff rates, especially in Asia.
He further explained that Marcos and the economic team reviewed the risks and potential next steps, considering that several Philippine industries would be impacted by the US’ reciprocal tariff policy.
“The keywords are probably not appeal. This is a negotiation. And of course, in my opinion the best possible outcome is a free trade agreement. Free trade agreement means zero tariffs on their side, zero tariffs on our side. That’s probably the best possible outcome of that meeting. But again, it’s open communication, dialogue, cooperation and let’s see what we can negotiate,” Go said.
Go acknowledged that Washington D.C.’s latest move may have a “0.1 percent effect” on the country’s gross domestic product over the next two years, based on estimates from the National Economic and Development Authority.
Despite this, he pointed out that the Philippines still has an “advantage” because the tariff imposed on the country is lower compared to those set for other nations.
“I think there are two things that we have to do now. Clearly, one is to engage with our exports to discuss with them what are the possible measures that they can take and that the government can assist them in this current situation. That’s the first thing. That’s the most important thing,” Go said.
“Secondly, we have to monitor kung anong ginagawa ng mga ibang neighbors po natin ‘no, ano iyong mga reaction nila dito sa taripa at ano po ang reaksiyon din ng Estados Unidos sa kanilang mga request,” he added.
According to the latest data from the US government, US goods trade with the Philippines totaled an estimated USD23.5 billion in 2024.
Imports from the Philippines to the US amounted to USD14.2 billion in 2024, reflecting a 6.9 percent increase, or USD912 million, from 2023.