PCCI warns of economic fallout from US tariffs, urges swift government action
PCCI has urged the government to respond to the US tariffs, warning of an economic fallout. INQUIRER FILES
MANILA, Philippines — The country’s largest business group on Tuesday urged the government to take swift, strategic action to help contain the potential economic fallout from the United States’ imposition of a 17-percent tariff on Philippine goods.
Although the current rate is among the lowest compared to those slapped on other member-economies of the Association of Southeast Asian Nations — Vietnam, for instance, was hit with a 46 percent reciprocal tariff — the Philippine Chamber of Commerce and Industry (PCCI) said the uncertainty over which specific export products will be affected leaves local industries vulnerable to potential disruptions.
“The US 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,” the PCCI said in a statement.
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Historically, such tariffs tend to target key sectors like food, agriculture, and electronics — areas where the Philippines has strong export stakes.
The PCCI added that it was wary of the potential impact the actions other countries may take in response to the US’ 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,” it said.
The PCCI also highlighted that the impact of these tariffs could be especially challenging for the Philippines, given its remittance- and consumer-driven economy.
It further warned 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.
In closing, the PCCI said it would wait for any government action on tariffs and will closely monitor how neighboring countries proceed before determining its next steps.
